Strong relationship between house price to earnings ratios and the change in house prices since the 2007 market peak. As well as being a basic affordability measure, house price to earnings ratios are also useful as a proxy for the amount of equity in a market. Generally the higher the ratio, the more the market is reliant on equity rather than mortgage lending and so the stronger the recovery in prices.
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Strong relationship between house price to earnings ratios and the change in house prices since the 2007 market peak.

As well as being a basic affordability measure, house price to earnings ratios are also useful as a proxy for the amount of equity in a market. Generally the higher the ratio, the more the market is reliant on equity rather than mortgage lending and so the stronger the recovery in prices.