Graph !!!!!! 2 - The next Generation

jamescredmond

an absolutely splendid graph.

even picasso, the master of depicting all things out of proportion, would be admiring and cooing over the technical mastery.

should be submitted to the NY museum of modern art, pronto.

m00m00

skap7309 wrote: »

Haha are you some sort of joker? Or pickles in disguise?
You see the two lines both plummeting southwards? Thats the one in question........

pickles in disguise ?

funny you say that ..........

ianmr65

It is a jolly good graph... i hear the BBC, who's graph it is, are considering selling plastic coated large versions, for that easy wipe finish. Aimed at the boys and girls who can't quite contain themselves:p.. with either exstatic joy, or uncontrolled panic!!

michaels

Actually I have never liked that graph - why are they plotting rate of change rather than absolute level - could it be because it makes things look a lot more extreme and therefore more news worthy? When they do graphs of unemployment or the price of petrol I don't seem them graphing the rate of change only the absolute numbers. After all on an absolute scale it would tell 2 stories - yes prices went up a lot at the start of last year that has since been reversed but also that prices are still along way above their level of 10 years ago.

Or how about an affordability graph - say the cost of acquiring a house outright over 25 years as a % of average income. Again this figure is not as scarey as the income multiples people like to quote on here as interest rates are lower and forward interest rates do not suggest any imminent return to the levels of previous decades. I could also go on about inelasticity of demand for housing (ie with rising incomes people are willing to devote a larger proportion of their income to housing costs) and the innate supply constraints (see what happens to the price of oil, big increases but people do not switch away as their are no alternatives).

However don't get me wrong I am not an 'HPC denier' (with all the connotations and hatred that followers of that doctorine receive on this board) but for me the previous rise and the current fall are rooted in expectations: Previously buying, even in to what was obviously a bubble, made sense as the consensus expectation was for further rises which became self perpetuating. The opposite situation pertains at the moment, as in classic deflations, why but now when you can get the same thing for less in the future?

And yes I have put my money where my mouth is; I sold my BTL last August, the money is in a high interest account atiing till the gap in prices between my current small terrace and the semi I would like has fallen to a sum I would be happy with.

Triker

I don't like graphs at all.

They remind me of maths at school.

I didn't like maths.:cool:

clobber_2

I loved maths. Something went very wrong in my life, now the only maths I do is working out compound interest rates...I liked those imaginary numbers. And calculus...lovely.

I have been drinking.

Zammo

Sorry I haven't had time to post tonight.

I've been far too busy with the hand cream and man size tissues.

mmmmmmmmm..........

:money::money::money:

obsessed_saver

michaels wrote: »

I could also go on about inelasticity of demand for housing (ie with rising incomes people are willing to devote a larger proportion of their income to housing costs) and the innate supply constraints (see what happens to the price of oil, big increases but people do not switch away as their are no alternatives).

I don't think comparing the price of oil and house prices makes sense. Oil is traded on the market much like shares. The price of oil is far more volatile than house prices. If you were to measure oil prices in terms of rate of change, it wouldn't make much sense because it can swing from $110 one day to $120 the next, up 30% one week and down 15% the next.

Whereas house prices can't be measured on a daily basis, so measuring it as a rate of change gives a clearer indication as to the trend it is heading.

Of course you can also plot the absolute value of the average house price every month. That will also give some sort of idea of the trend.

Actually here are the graphs of the absolute average house price, Nationwide:
http://www.housepricecrash.co.uk/indices-nationwide-national.php

And one for Halifax:
http://www.housepricecrash.co.uk/indices-halifax-national.php

neverdespairgirl

clobber wrote: »

I loved maths. Something went very wrong in my life, now the only maths I do is working out compound interest rates...I liked those imaginary numbers. And calculus...lovely.

I have been drinking.

I used to love algebra, but all those pesky triangles used to drive me round the bend.

JonnyBravo

neverdespairgirl wrote: »

I used to love algebra, but all those pesky triangles used to drive me round the bend.

Round the bend? You're getting confused. That's probably a circle you're looking at.