Tuesday, March 29, 2011

Real House Prices and Price-to-Rent

Real House Prices and Price-to-Rent

Great analysis and graph of hoouse prices.

This is what Canada's house price chart will likely look like in the next few years.


jesse said...

You beat me to it! Note what CalculatedRisk stated:

"An interesting point: the measure of Owners' Equivalent Rent (OER) is at about the same level as two years - so the price-to-rent ratio has mostly followed changes in nominal house prices since then. Rents are starting to increase again, and OER will probably increase in 2011 - lowering the price-to-rent ratio."

OER increases? It happens, even with stagnant interest rates...

jesse said...

On this vein, ht CalculatedRisk, details on the new proposed mortgage lending regulations in the US:

WSJ: Regulators Unveil Mortgage-Lending Rules

Just think, requiring lenders to: reserve 5% of capital on any residential loan, require 10% DP with private MI, or require 20% DP. This effort appears to have support from both sides of the aisle. On first blush it is more prudent than Canada's "prudent" system.

Anonymous said...


me too! i have this article open since it was posted on calculated risk but didn't get a chance to publish it!