IMHO The correlation between wages and house prices is a lot more complicated than what is suggested.
Houses are no longer priced on what they are actually worth, that is an old concept
They are priced by what the seller they can get
What they can get is decided by the amount of wages the buyer gets which in many cases controls the amount he can borrow.
Also in the mix and IMHO more important that any other consideration is how much he is willing to gamble.
Yes gamble, because if the public is feeling confident they will go all out and borrow to the hilt but if not, they will scale right back.
So although wages are fairly constant the house prices now can float quite freely up and down, and as houses are no longer sold on what they are worth there is no restriction in holding the price up if they do not sell.
When confidence is lost for any reason at all and it does not have to be due to economic or financial reasons the prices will drop and the amount of wages being paid has no bearing on the issue
