Become a member. Sign up here

Become a member

Already a member?

Forgot your password?

House prices crazy no matter how you slice it

DECEMBER 18, 2011

This will be a very short post.

I did a radio interview for This Week in Money in Vancouver.  My segment starts around 19:00 or so.

 

I'd also like to highlight an interesting article by Prakash Loungani, a senior resource manager and advisor in the IMF's Research Department:.

The chart below compares changes house prices in various countries relative to their long-term price/income and price/rent trends. Canada ranks as most overvalued in the world based on rents, 5th most based on incomes. 

I've previously highlighted why rents are so crucial in underpinning house values:

House prices and rents:  Why they should track each other and why it should concern us that they haven't

Examining house prices and rents in major Canadian cities

Cheers

Ben

Posted in:

Ben Rabidoux
By Ben Rabidoux

Enjoyed this Post?

Subscribe to our RSS Feed, Follow us on Twitter, Subscribe by email or simply recommend us to friends and colleagues!

4 Comments

  • george said:
    • 1 year, 5 months

    Three Charts That Blow the Doors Off any Hope of a 2012 Rally

    http://www.oftwominds.com/blogdec11/three-charts12-11.html

    Reply
    Post a comment
  • terces said:
    • 1 year, 5 months

    holy crap. This is a scary scene. I feel for the people around me who just will not listen and stay over exposed to real estate. After a life time of building up real estate assets, it feels strange to have sold everything and be liquid. I cannot imagine the stress that I have avoided. Thanks again for a great post.
    Ron

    Reply
    Post a comment
  • Anonymous said:
    • 1 year, 5 months

    Thanks for your tireless work Ben. Keep it up, will always be following your posts.

    Reply
    Post a comment
  • robledoch said:
    • 1 year, 4 months

    What is the basis, exactly, of the historical average indicated as the 100 baseline?

    Interest rates have never been lower than in the last 7-8 years, and will stay down precisely due to the large asset and related loan amounts, allowing most to stay above water.

    Reply
    Post a comment
Post a comment