The history usually repeats itself. The house prices usually go on a trend and the increase is usually a bit more than the rate of inflation.
The house price tripled in UK in 10 years, in order to go back to the trend they NEED to decrease by 50%.
The question is: is it different this time such that the trend story becomes obsolete?
The man on the street does not know much abouyt trends and very little about graphs and mathematics.
It is very risky to say that mathematics and history are not even good enough for toilet paper…
Well, I’ve been looking at rents and property prices around my way and the yield seems to suggest that prices should drop 50% to give any investor a 10% yield. I can’t believe it myself but those are the figures. I imagine I am doing something wrong or I have used an unrealistic sample.