Are the prices of real estate really that cheap?

So your neighborhood real estate price has dropped to levels seen in 1998 or before, but what about other parts of the world? London at one time was known as the most expensive place in the world to buy a home or even a small flat. Are their real estate prices deflated as well? What about Hawaii real estate? Surely their prices have not dropped as well. So here is what I found out:

The prices in Great Britain have dropped but not nearly as dramatically as they did in the USA. Their peak in real estate prices was reached in 2006-2007 and now they have dropped back down to 2004 levels. Their current average price is roughly $300,000 (US) compared to $100,000 (US) back in 1995.

Hawaii has some improvement in sales over the last few months but only on the homes priced under $500,000 (and there are very few of them around). Homes priced at over $600,000 are slow to sell and in fact their prices have to be cut to get them to move. The average wage in Hawaii is at $49K a year so it is obvious that the homes are being snapped up by people who do not make a living in Hawaii.

The hardest hit place in the world with the real estate market is still the USA.

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