TPP528: What’s really happening to property prices?
The Property Podcast
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The Effect of Inflation on Property Prices
Property prices were running well ahead of inflation from 2004 to 2007. Over those three years, property outpaced inflation by 15%. Property prices then came down by about 15%. But when you look in real terms, that didn't actually happen. All that happened was that property prices held their value. So the consequence of that is that property is becoming more affordable. It's happening in stealth mode because people don't talk about this. Inflation is 10% plus at the moment, it's in double digit territory. You've got property prices falling in real terms right now. So property become more affordable again. To have a crash, you need something to happen before and that's called a boom
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