Do you take any notice of average property prices?

[nmb]

The recent downgrade in the perceived average property price in the UK caught many investors by surprise. There are so many different average property price indexes and so many ways in which to weight these figures that it all becomes very confusing. Do you take any notice of average property prices when investing?

 

[Denise Webster]

I do, but just take the median of them all, give me a rough picture of the local area. If it's in your own country, if it's possible go and check the area out. Right now I have bets of another bubble so Im in no rush to invest.

 

[nmb]

Hi @Denise Webster I saw a report today that suggested the house price to household income ratio has now hit 6.1 which is extremely high compared to the 6.4 level just prior to the 2008 worldwide property market collapse. However, the issue of low finance rates may delay what many people see as an inevitable property market "correction".