Friday, Dec 29, 2006

House prices on the rise again

The Times: House prices on the rise again

The print version has a graph showing the ONS/Datastream/Nationwide data for RPI and percentage change in house prices since 1953. It is interesting because it shows a) RPI always peaks after a large % change inhouse prices b) It highlights the cyclical nature of the housing market with huge peaks in 1970, 1978, 1989 and 2002. Each time (with the exception of 2002) there is a period of near zero growth for some time (coupled with high RPI inflation to erode the capital of the debt). In 2002 RPI has been very low. RPI in the 70s was well above 25% illustrating the argument that inflation eroded the capital of the debt of baby boomers in the 70s (wages are set by RPI mind you I don't think CPI existed in the 70s). The text is the usual bumf. It was the graph that interested me. I would scan it and post it but I'm at home at parents for holidays and don't have my scanner.

Posted by scumbag @ 07:25 PM (603 views)
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