For nearly seven years now, many commentators have been predicting a housing bust and have taken a negative view on the state of the market. They believe that consumers are already at peak debt, that housing is unaffordable and that a correction is only a matter of time. However, prices haven’t collapsed over that period, instead improving markedly in many places.
Household debt-to-income ratios and house price-to-income ratios have been high and climbing higher over the past decade, and these issues haven’t been effectively dealt with. In fact, both of these measures have failed to give any useful insight into the property market.
