Roamer.com

Having just watched a program about the current property market and the comments about affordability that not only this program mentioned but that is also all over the press at the moment I thought I would share my comments on this.

All we are hearing about in the media is about the current house price to earnings ratio in regard to affordability which I have heard as being 1:9 and in 1990 around the time of the property crash this was around 1:5. This is being reported in a way that suggests we are now in for a property crash and that the current market is not sustainable etc etc. Whilst I feel that prices may be heading for a downturn or at least a levelling off my opinion is that a big part of the reason is the lack of confidence in the market that the media is fueling. I see the way they are reporting the figures as being mis-representative as they are not taking in to account the current interest rates. (more…)