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They might but it may not push up house prices
by quickthrower2 5y ago
They might but it may not push up house prices
- adrianb 5y agoHow so? If these days a house listed for x gets offers at x+10%, after average wages increase it will receive offers at x+20%. Is there any historical precedent of house prices not rising faster than inflation, absent external factors? I think a major correction of house prices can happen in two ways: - economic catastrophe (everyone's unemployed) / war / natural disaster / ... - we wouldn't want to buy a house anyway in that case; - major increase of interest rates or minimum deposit required - we wouldn't be able to afford the mortgage in that case.
- quickthrower2 5y agoHigh inflation -> higher internet rates -> lower income multiples for loans + higher rental yields to support interest rates.