Jeroen

Shorting the Homebuilders as Their Stocks Surge

news.bbc.co.uk/1/hi/pr...

"Average annual earnings in Germany and Britain are similar: £20,981 (euro30,984) in Germany compared to £22,950 in the UK. "

"The average house price in Germany is £148,971 (euro220,000), whereas in Britain it is £196,893. "

Shorting the Homebuilders as Their Stocks Surge

Although the relative value (Europe/US) argument might have some merit at first sight (yes, real estate is expensive everywhere, and e.g. Spain/UK are in trouble), if you want to do a realtive bubble comparison you also have to take into account savings rates, tax law, quality of construction, job market, debt service ratios. And the resulting prices in dollar-terms, might say more about the relative value of the dollar, than the property market per se.