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Last Hun Standing

Understaded Inflation Vs Real House Prices

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I realise this may be a bull argument, but if inflation has been systematically understated, as many including myself are inclined to believe, wouldn't that mean the real price of houses has not grown as much as we think it has?

It is merely the effect of the value of cash going down relative to assets as a byproduct of credit creation.

Shouldn't the real price peak, be a lot lower if we account for debasement of sterling?

For example the nationwide graph of real long term house prices should be a lot lower instead of bigger than any previous rise.

http://www.nationwide.co.uk/hpi/historical/Feb2006.pdf

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True. But you should really compare it to wage inflation (you can get the data from the ONS)...

There's a job for you...

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  • 302 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%



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