Will the surge in house prices end with a bang or just fizzle out? | Hamish McRae

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The current rate of increase has to slow down – but the hard question to answer, writes Hamish McRae, is when

must inevitably come to an end. But we don’t know when that end will come, or whether it will come with a crash or simply fizzle out.

 

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House prices are inversely proportional to the interest rate which in turn represents the return on other people’s debt. Welcome to divide by zero...

The surge in house prices is likely to continue on and on, until the only affordable housing will be the back seat of your car.

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