Between 1997 and 2007, house prices in the UK increased exponentially from £58,000 to £188,000 (by 224%) when real wages only increased by 24%. This led to properties being valued significantly higher than their long term fair value (3.5 times average salary; at current rates £80,500). Since 2007, despite the worst recession since 1929, prices have only fallen by 21%. Yet despite this only being a small correction, with prices being nowhere near the long term average, the media have referred to this as a crash. Why do the media report the correction in this way?
Why do the media refer to the housing market correction as a housing crash?
- Thread starter W. Rostow
- Start date