So, the US housing bubble appears to be bursting, the European Commission is worried about the state of a European housing bubble, and here in Britain we've been seeing a housing bubble as well.

Are we really going to see the housing bubble burst in the UK, though?

As a first time buyer looking to buy a property perhaps next year, the property values are completely disheartening - if I were buying 5 years agao I could have bought something pretty decent, but now I'm faced with some pretty limited choices.

Trouble is, with all the talk of SIPPS and REITs, does this mean that the UK bubble is never going to burst, and instead will - at best - slightly deflate next year?

Or can be we a healthier buyer's market really come out of this?

I think economic conditions for the UK are considerably different from the US and that you are going to see a cooling of the UK housing market but little real fall. The UK is just too strong on inward investment.

The US is another issue and the huge debt here makes it more of a problem in all investment sectors. Trade Deficit is one big spectre overlooking all markets.

Maybe so, we do have REITs and SIPPs on the horizon, though, which are really going to change the property market here. I can really see REITs helping prevent the housing bubble, and I figure that's the government's intention. As someone looking to buy a house soon, and seeing the insane prices, I'm really hoping for deflation.

You know, I really think that depends on the area...I know the Orlando-Central Flordia Area (which had a drastic increase the past few years...my house more than doubling in price) has slowed down, but has not burst. It is the second largest growing market outside of San Fransico...infact, there seems to be a shortage of housing as a whole...with most apartment complexes trying to cash in by going condo...

As with any type of business, its hard to make sweeping generalizations that take in all the diverse areas...

I think some us areas are still primed for good investment. I personally like (besides Orlando) areas in North Carolina...housing is cheaper relative to Central Florida and the area appears to be on a major growth tangent.

Ditto Gotham. In some areas in Nassau County, Long Island, where there are good school districts, values just keep going up and has not seen a downturn at all. As Gotham says, there are too many variables to generalize: Examples: Schools, property taxes, new construction in the area, commerce in the area that can affect the housing market.

True the US is just so huge that there are many micro-markets in real estate but US debt is a serious concern and in my opinion makes property here more vulnerable to movements than the UK. Just an opinion in comparison.

In the UK house prices are huge compared to last year at the moment, and I'm not even talking about locations that are always pricey such as London

In our country, real estate is always a good business. The price of land and houses are always rising. It seems very different from UK and US, as what I have learned from the forums that I have joined.