If these days a house listed for x gets offers at x+10%, after average wages increase it will receive offers at x+20%. Is there any historical precedent of house prices not rising faster than inflation, absent external factors?
I think a major correction of house prices can happen in two ways:
- economic catastrophe (everyone's unemployed) / war / natural disaster / ... - we wouldn't want to buy a house anyway in that case;
- major increase of interest rates or minimum deposit required - we wouldn't be able to afford the mortgage in that case.
If these days a house listed for x gets offers at x+10%, after average wages increase it will receive offers at x+20%. Is there any historical precedent of house prices not rising faster than inflation, absent external factors?
I think a major correction of house prices can happen in two ways:
- economic catastrophe (everyone's unemployed) / war / natural disaster / ... - we wouldn't want to buy a house anyway in that case;
- major increase of interest rates or minimum deposit required - we wouldn't be able to afford the mortgage in that case.