In fresh weeks, there has been a ...

In fresh weeks, there has been a flutter of articles written in heeded newspapers and magazines asserting that there is a worldwide "housing bubble" (usually compared to the "dot corn bubble') These articles prominently feature a price-earnings (P/E) ratio applied to housing. The P/E ratio is familiar to dabblers in the stock market as the share price divided by dint of the company's earnings. By looking at average house prices in a nation or a region and the index of breaks in the consumer price index, a certain quantity of economists have calculated a P/E ratio for housing. They report that rising place of abode prices in ...