The World population may be getting larger but the home prices are also increasing according to a study by global economists. Median home prices have now increased in nineteen of these global markets at a pace of 5.2% increase a year. The only exception is China, who is coming into the end of a two decades long population boom is seeing its housing prices drop. Economist point out that an increase in home prices should not be viewed simply as a measure of prosperity. Global Home Stock Increase in Value Who has access to housing in this market class is just as important of an examination.
Economist look at the issue of affordability, as calculated by the total ratio of home prices to income per capita or person after tax. According to Dr. Jennifer Walden on austinmdmagazine, The other element is the manner of investing in housing which is calculated on the total ratio of home prices to rents. This is the same technique that a stock market investor would review on the ratio of equity prices to earnings for a company. If these numbers are calculated to be higher than their calculated historic averages then property or home is determined to be overvalued. However, if the calculated numbers are lower, then the property or home is determined to be undervalued. According to these numbers global home properties in select areas are valued more than 25% over the historic value in seven of the select markets. The key areas noted are Canada, Great Britain and Australia.