Maybe the UK House Bubble is a Leading Indicator

The housing market in the UK and other parts of Europe has supposedly been even hotter than here in the US. There has been a lot of talk in recent weeks about weaker prices in the UK and it will be interesting to see if prices come in over there. I would imagine that if prices do decline over there, it will signal that house prices here might be ready to decline.

“House prices are fluctuating around a softening trend, according to new figures from the Office of the Deputy Prime Minister (ODPM).
Figures out today show that in March house prices rose 2.1 per cent, seeing property values stand 12.6 per cent higher than in the same month last year.

However, this rise should not be taken as a return to the housing boom of the last few years, economists have warned.

"The rise back up in annual house price inflation to 12.6 per cent in March from 10.5 per cent in February reported by the ODPM should not be taken as a renewed sign of strength in house prices…”