Friday, May 28, 2010
The devil’s in the detail – house prices to rent and income
The latest OECD economic outlook report has revealed some fascinating stuff about the value of house prices relative to income and rent across the world. This is a good indicator, because it gives us a pointer as to whether house prices are overvalued, and thus due another fall down the line. The article looks at the UK, US, Germany Japan, Spain and France. Japan's tale of woe is illustrated beautifully by the data, will the rest follow?