Sunday , February 23 2020
Home / Managerial Econ / Are house prices over valued?

Are house prices over valued?

Summary:
Not as bad as in 2008, but historically high relative to renting.  In the long run the prices should be close (Chapter 9).Housing prices differ by city, so check the affordability vs. the wages in your area, a measure of the "real price" of a house.QUESTION:  based on the real prices below, do you think these wages and housing prices are in long run equilibrium? HT:  Calculated Risk

Topics:
[email protected] (Luke Froeb) considers the following as important: ,

This could be interesting, too:

[email protected] (Luke Froeb) writes Why is real estate market so inefficient?

[email protected] (Michael Ward) writes Pay-How-You-Drive Insurance Works

[email protected] (Luke Froeb) writes China’s coming population collapse

[email protected] (Luke Froeb) writes What domestic cause unites the presidential candidates?

Are house prices over valued?
Not as bad as in 2008, but historically high relative to renting.  In the long run the prices should be close (Chapter 9).

Housing prices differ by city, so check the affordability vs. the wages in your area, a measure of the "real price" of a house.

QUESTION:  based on the real prices below, do you think these wages and housing prices are in long run equilibrium?

Are house prices over valued?

Are house prices over valued?

HT:  Calculated Risk

Leave a Reply

Your email address will not be published. Required fields are marked *