Of the 23 countries listed the USA was the 4th more affordable in terms of price to incomes.
Chicago, IL (PRWEB) January 21, 2014
The Economist released an article on January 4th titled “Castles Made of Sand.” Peoples Home Equity found the information in the article interesting as it highlighted the affordability of global housing markets. Of the 23 countries listed the USA was the 4th more affordable in terms of price to incomes. Peoples Home Equity looked a few different ratios to verify whether or not the USA remained value market from different data points.
The Economist ranked Japan the most inexpensive housing market in the world based on both rent prices and incomes. In second place was a split between Germany in terms of rents and China in terms of incomes. Readers must choose which ratio has a stronger relationship regarding affordability. Price against rents “compares the relationship between the costs of buying and renting.” Prices against average income “compares house prices against average incomes in each country.” Thus, in terms of average incomes in China, the real estate prices remain cheap. However, in a place like Belgium prices for properties are much higher than the incomes earned. Belgium is shown to be the highest ranked in terms of price to incomes. Meanwhile the highest ranked countries terms of prices to rent are Hong Kong, followed by New Zealand, and Canada.
Of the 23 countries listed, most were shown as expensive both in terms of rent or incomes. In the rent category, 16 countries were overvalued, and in the income category 13 were overvalued. Alibi, some countries could not be ranked due to a lack of rent or income information. The United States was slightly overvalued in terms of rents, but undervalued relating to incomes.
Peoples Home Equity that readers must remember that inside the USA is a number of different housing markets. The S&P/Case-Shiller Home Price Indices always gives a good graphical representation of how different US real estate markets are more stable or volatile than others. For example, Denver’s home price index as already reached all-time highs, in contract, the Las Vegas remains -45% below its August 2006 peak. Then in each different city are areas that outperform others. Peoples Home Equity encourages it readers to do their reach before buying an income property in the US, but not to hesitate in terms of applying for a home loan. Property values are rising and the affordability of US real estate relating to incomes may soon change, thus it’s important to repair now.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300