London Real Estate Back to Defying Gravity

From a Brett Arends piece in Friday’s Wall Street Journal:

London real estate has actually bounced off the bottom in the last nine months. Prices are now down a mere 9% or so from their 2007 peaks, according to data tracked by mortgage giant Nationwide Building Society. The average home in London, including all those dreary outskirts that go on and on and on, is $436,000. That’s even higher than it was as recently as 2006, when the bubble was in its late stages. In the fashionable center of town—where the properties cited at the top of this article are all located—the prices are astronomical.

Overall, British prices have only fallen about 12% from the peak. When compared to household incomes, they stand far higher than they did even in 1989, at the peak of the last property bubble.