Is property in a bubble?

economic

GreatApe wrote: »

Uk
Jan 2008 £185,782
Jan 2017 £226,756
Up 22%

SE
Jan 2008. £235,300
Jan 2018. £322,269
Up 37%

BOE inflation calculator 2007-2017 = up 32%

London is indeed up 60% but that is to be expected as for the last 20 years London has been growing more than rUK so it's house prices will grow more than the UK. So yes London up about 30% more than inflation

Are the house prices based on median numbers or mean?

ukcarper

economic wrote: »

Are the house prices based on median numbers or mean?

Not sure what you mean by based.

economic

ukcarper wrote: »

Not sure what you mean by based.

How are the average house prices calculated? Median or mean?

ukcarper

economic wrote: »

How are the average house prices calculated? Median or mean?

I believe Land Registry don't use either. They use a Hedonic regression model.

economic

ukcarper wrote: »

I believe Land Registry don't use either. They use a Hedonic regression model.

ok its probably closer to median average then mean average which makes sense.

AG47

Property is a bubble, it's obviously a bubble caused by artificial temporary low borrowing rates,

When interest rates go back to normal so will property prices

westernpromise

AG47 wrote: »

Property is a bubble, it's obviously a bubble caused by artificial temporary low borrowing rates,

When interest rates go back to normal so will property prices

What are "normal" rates, then?

GreatApe

Some additional Inheritence info out

Over 200,000 homes annually left in wills so from old to younger for free
Over £21 billion in cash and £15 billion in securities and insurance policies
Total net £83 billion given from old to young annually via Inheritences and thus data is 3 years old asset prices have gone up and the savings rate was positive over the last three years so the figure today could be closer to £100 billion

This is a great country with lots of wealth. Sure the older hold it but it is continuously recycled to the younger. £100 billion in Inherited wealth annually and probably another £100 billion gifted annually

Amazing

economic

GreatApe wrote: »

Some additional Inheritence info out

Over 200,000 homes annually left in wills so from old to younger for free
Over £21 billion in cash and £15 billion in securities and insurance policies
Total net £83 billion given from old to young annually via Inheritences and thus data is 3 years old asset prices have gone up and the savings rate was positive over the last three years so the figure today could be closer to £100 billion

This is a great country with lots of wealth. Sure the older hold it but it is continuously recycled to the younger. £100 billion in Inherited wealth annually and probably another £100 billion gifted annually

Amazing

Those with decent amount of wealth or due to receive a decent amount of inherited wealth probably should start spending more as the utility of money will decrease over time due to technology and innovation. Real interest rates are a reflection of this. Capital is being hoarded is vasts amounts.

GreatApe

economic wrote: »

Those with decent amount of wealth or due to receive a decent amount of inherited wealth probably should start spending more as the utility of money will decrease over time due to technology and innovation. Real interest rates are a reflection of this. Capital is being hoarded is vasts amounts.

I don't think capital is being horded rather massive amounts of capital is being created.

If we take residential housing its possibly the worlds largest stock of capital.
Something close to 50 million new homes are being built each year

If we set a global average price of $100,000 a property that is $5 trillion being created annually just on housing! The world really is improving very rapidly

The future is going to be great