L
Liam D Ferguson
Guest
Interesting article on global house prices in the economist this week. Basically the economist has taken the view that house prices MAYBE exhibiting bubble like characteristics based on a fundamental analysis. The Economist is usually quite objective in its analysis and correctly predicted back in 1999 the Dot con crash of 2000 when everyone else was losing their heads and buying tech funds etc.
The magazine has started tracking house prices in most industrialised country's including Ireland. One quote that may be of interest to AAM contributors is:
"The best gauge of whether house prices are overvalued is the ratio of house prices to average disposable income—the equivalent, as it were, of the price/earnings (p/e) ratio for shares. In America and Britain, this ratio is now close to its peak of the late 1980s, and the ratio is flashing red in some cities, such as London and Washington, DC. In Ireland and the Netherlands, the ratio is at a record high."
Have a read and tell me what you think.
www.economist.com/finance/displayStory.cfm?story_id=1302601
<!--EZCODE ITALIC START--> Edited to fix link.<!--EZCODE ITALIC END-->
The magazine has started tracking house prices in most industrialised country's including Ireland. One quote that may be of interest to AAM contributors is:
"The best gauge of whether house prices are overvalued is the ratio of house prices to average disposable income—the equivalent, as it were, of the price/earnings (p/e) ratio for shares. In America and Britain, this ratio is now close to its peak of the late 1980s, and the ratio is flashing red in some cities, such as London and Washington, DC. In Ireland and the Netherlands, the ratio is at a record high."
Have a read and tell me what you think.
www.economist.com/finance/displayStory.cfm?story_id=1302601
<!--EZCODE ITALIC START--> Edited to fix link.<!--EZCODE ITALIC END-->