Tuesday, September 22, 2015

House prices



This article by The Economist looks at the housing market with a series of fascinating but sometimes confusing charts. The simplest one above is my favorite. I may have to dig in to the data to investigate the trends before 1960 in more detail as it looks like there were several periods of prolonged negative returns. Fundamentals aside, it's surely a sign to tread very, very carefully when the perceived wisdom of the day is that renting is akin to flushing money down the toilet and that you can't go wrong with houses in the long run.

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