In its Financial Stability Review, the ECB also warned about further falls in asset prices if the economic outlook deteriorates as a result of the war in Ukraine or inflation turns out to be much higher than expected.
The ECB, which is set to raise its main interest rate in July for the first time in a decade, estimated homes in the euro zone were now nearly 15% over-valued on average and up to 60% in some countries, based on the relationship between prices and income. "An abrupt increase in real interest rates could induce house price corrections in the near term, with the current low level of interest rates making substantial house price reversals more likely," the ECB said in its biannual FSR.Slovakia, Estonia and Lithuania were showing the fastest growth in both residential property prices and mortgage lending.
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Housing targets may not be met due to costs - surveyorsBoth the Society of Chartered Surveyors and the CIF are calling for Government action across a range of areas including planning, levies and site enabling works to reduce costs. Wonder how long it will take to collate that data? Probably longer than the government will be in power, after which it will be deemed a bad idea and shelved by which time the housing crisis will be largely insurmountable. Top class governance that. So they will just take the census data and take over private property. Communism incoming. I saw several people testifying of making so much money with the help of Richard__Gowen on Bitcoin option trade and I decided to give a try and now I'm glad now he helped me and my colleagues to make £7,580 in 5days trader, thank you for transparency and trust.
Source: RTEbusiness - 🏆 16. / 61 Read more »