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These are both good points. I was wondering why the supposed trend was so flat. The answer is that there are so many other random factors pushing in both dire
by pg 18y ago
These are both good points. I was wondering why the supposed trend was so flat. The answer is that there are so many other random factors pushing in both directions that there probably is no real trend.
It would probably be more reliable to predict the bottom by looking at the ratio of house prices to income. That shouldn't change too fast.
- netcan 18y agoAn interesting bit is that you'd need to use different samples to infer about the 'cost of housing' then what you would need to infer about the 'value of property.' Most places, the cheaper houses are new developments on the city's fringe. Since a lot of people live there, you need to take them into account when looking at 'housing costs.' But you don't take into account new developments when looking at real estate as an asset. You're not buying 'housing' your buying 'houses.' Existing properties can increase while cheap new houses keep averages down.