Is London Headed for a Housing Bubble?

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Oct. 21 (Bloomberg) -- On today's "Global Outlook," Bloomberg’s Matt Miller takes a look at the London housing market. Fleckenstein Capital President Bill Fleckenstein also comments. They speak on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Talking about a possible property bubble in london.

One analyst has called this unsustainable.

Matt miller just back from europe.

10% gain.

That was what we saw for the average home in london this month after a buying frenzy reduced the available stocks to nearly nothing.

This is according to the property website that says prices jumped $82,000 to an average of 879,005 hundred 30 three dollars, which does not sound so bad if you come from new york city.

Still a huge jump.

What is behind it?

Pre-k's there is a huge influx of overseas buyers coming to the london property market.

A bounce from the summer when we saw a big slowdown and foreigners really see london as a real estate safe haven when things get scary at home or globally.

More locals are able to get into the market and government programs make it easier for them to get a mortgage with five percent down.

I am thinking like no doc mortgages.

Obviously some sort of feeding frenzy.

I think whether it is a bubble or not a lot of times has to do with the behavior of artistic sense.

They are pushing prices up.

If the participants are all doing it with no money down and stripping equity out of the house, you have a very fragile structure that will return and collapse upon itself.

Coming up next, talking about netflix, best-performing stock

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