Jump to content
House Price Crash Forum

House Prices As A Function Of Gdp


Recommended Posts

Thought this might be interesting. Seems to show the cycles nicely.

Kind of the ultimate house prices vs. income chart.

hpgdp.JPG

Edit: Forgot to say, house prices are Nationwide, GDP is from national statistics.

post-1557-1118480962.jpg

Edited by echapps
Link to post
Share on other sites

Nice one.

This shows what bulls.hit the arguments are that the number of women in work, the level of divorce, the number of singles etc explains high house price to income levels.

When you take the aggregate level (as the graph shows) then either:

1) Britain has decided to permanently spend more of its wealth on property

or

2) we are just at the top of the latest cycle of boom/bust (i.e. it isn't "all different this time", it is entirely the same).

Link to post
Share on other sites
  • 3 weeks later...
Also added re-based (and GDP-adjusted) FTSE-100 for comparison.

I read an article a few years back that suggested that house prices and the stock market both indicated confidence in the future, and the fact that property was (and still is) expensive whilst the FTSE was low gave mixed signals. (High house prices indicate an expectation of future salary growth, whilst a low FTSE showed little confidence in UK PLC.)

It's interesting to see it represented graphically.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 440 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.