The History of the Herringracht Index

Pete Eichholz is the Forders' Professor of Finance and Real Estate at Maastricht University. He created the world's longest running Real House Prices Index in 1997. In this episode, Pete explains the index, what makes it special,. how he compiled it, why we need to take a long-run view of house prices and how he thinks about housing bubbles. I also challenge him on the external validity of the index and ask him, can we generalize its lessons to other housing markets like Australia's?