use T.A to determine when you should buy and sell property?

[new_trader]

I don't think there's anything that tells you everything. Also I don't think many TA people would consider it wise to trade an instrument based solely on an average of instruments, unless it's the average you're trading. Sure if you are trading a stock you might look at the Dow for some overall trend, but you're going to need to look at the stock itself. And that's just when there are 30 components in the average. How many components are there in the housing average? Think it would be nuts to make a judgement on one individual house from just that.

And then there are other issues such as liquidity, transaction costs etc, and the fact that not everything about a house is contained in its value or even its relative value to other houses, i.e. your personal utility.

The difference is that it is possible for the average investor to pick one stock that outperforms the stock market averages. What are the chances they could do the same with a house? So, despite minor cosmetic differences, it would be fair to say that if the price of the house you own doubles, chances are, almost every other house has doubled in value as well. I know it's human nature for a person to think that their house is worth much more than their neighbours house, but it is rarely the case.

 

[Liquid validity]

where's the chart for that then :cheesy:

Data source = Council of Mortgage Lenders, Land registry, Nationwide BS.

Graphs > Percentage of first time buyers - HousePriceCrash.co.uk
Graphs > First time buyer average house price to earnings ratio - HousePriceCrash.co.uk
Graphs > Mortgage Approvals - HousePriceCrash.co.uk
Graphs > Individual Insolvencies - HousePriceCrash.co.uk
Graphs > Nationwide average house prices adjusted for inflation - HousePriceCrash.co.uk
Graphs > Buy to let - HousePriceCrash.co.uk
Graphs > Nationwide year on year percentage change - HousePriceCrash.co.uk

 

[darktrade]

Do not waste your time with TA.

 

[malaguti]

Data source = Council of Mortgage Lenders, Land registry, Nationwide BS.

Graphs > Percentage of first time buyers - HousePriceCrash.co.uk
Graphs > First time buyer average house price to earnings ratio - HousePriceCrash.co.uk
Graphs > Mortgage Approvals - HousePriceCrash.co.uk
Graphs > Individual Insolvencies - HousePriceCrash.co.uk
Graphs > Nationwide average house prices adjusted for inflation - HousePriceCrash.co.uk
Graphs > Buy to let - HousePriceCrash.co.uk
Graphs > Nationwide year on year percentage change - HousePriceCrash.co.uk

Cheers LV :clap:

 

[isatrader]

Here's a recent article about the US housing market that uses TA: http://www.marketoracle.co.uk/Article38458.html

I don't agree with his predictions as I think house prices will continue to grind sideways for more years yet, and hence fall in real terms due to inflation, but it shows some useful charts and data including the inflation adjusted US house price chart.