I want to kill with this post 2 hare.
First, I want to recommend again, in my mind, the best economist in LJ ,who does not throw slogans,but almost ideally arguing his point of view. In any discussion, he always adheres to the rules of intellectual dialogue.
Secondly, in view of our disagreements over his last post( I think, that he has an advantage over me in mind in the difference in the class of economic) I will give my arguments in my blog. Perhaps others will be able to express their point of view.
Возможно этот schedule и не корректный, but still it shows the so-called house affordability, that is, how affordable in terms of mortgage approval for the population.
The first panel shows the growth of personal income and expenses, the middle panel shows the difference between them.
The bottom panel shows the affordability index itself.
Number 100 means, that the average family is eligible for a mortgage on a medium-priced property. This takes into account, что down payment 20% and that the monthly expense on the mortgage does not exceed 25% from income.
Number 150 means, what the household has 150% income,required to obtain a mortgage, covering 80% real estate prices.
Can be clearly seen, how availability fell with growth % on mortgage in 2004-2006, as well as an increase in availability with a fall % on mortgage. At the same time, real estate prices were growing in 2004.
Banks can issue mortgages , but do not want, which is applicable to the real sector.
