Home prices in the Netherlands surged the fastest in 20 years last month, up 12.7% year-on-year. This highlights how the coronavirus pandemic did not undermine Europe’s soaring residential real estate market.
The home price issue has become a lightning rod for criticism of the European Central Bank’s ultra-loose monetary policy and has emerged as one of the public’s greatest concerns at the ECB Listen online event as part of its strategic review.
The Dutch Statistical Office said on Tuesday that the price of homeowners in May rose at the highest rate since April 2001, rising two-thirds from the valley in June 2013, a record high.
The house price is Rise 7 years in most of Europe. ECB said in Report Eurozone home prices, announced this week, rose 5.8% year-on-year in the fourth quarter of last year. This is the highest growth rate since mid-2007.
Germany, France and the Netherlands account for almost three-quarters of the total rise in home prices in the euro area last year.
Soaring home prices and a shortage of affordable homes have caused public anger at large commercial landowners in some countries.Ireland Be imposed A 10% stamp duty is levied on anyone who purchases more than 10 homes in 12 months after a US investment fund buys 135 out of 170 homes in a single development.
In Germany, the plan 18 billion euro merger Between Vonovia, the country’s largest residential landowner, and its rival Deutsche Wohnen, rent caps and corporate nationalization are required.
ECB President Christine Lagarde was asked about the risks of the housing market at a hearing in the European Parliament on Monday.
“Youth and middle-class families are forced to overpay and participate in rat races in the overheated housing market,” said Michiel Hoogeveen, Eurosceptic Dutch MEP. “This is one of the consequences of generous funding and low interest rate policies to highlight weak eurozone countries.”
Ludek Niedermayer, a centre-right MEP and former Lieutenant Governor of the Czech Central Bank, asked Lagarde: Why do not you? “
In response, Lagarde said, “There were no strong signs.” [a] “The credit-backed housing bubble across the euro area,” she added, but there were “vulnerabilities in residential real estate” in some countries, especially some cities.
“The disconnection between home prices and broader economic development during a pandemic carries the risk of price adjustments,” Lagard said, saying “carefully design” macroprudential policies such as domestic mortgage restrictions. I asked.
As part of that Strategy reviewThe ECB may urge EU statistics agencies to follow other countries by including the cost of homeowners in inflation data, which is technically difficult and a number to achieve. It may take years.
However, ECB Governor does not suggest that monetary policy can be tightened in response to rising housing markets, and most economists believe this is unlikely.
Adam Slater, an economist at Oxford Economics, said: “Neither this result nor the sustained rise in inflation is an attractive outlook for central banks.”
Dutch home prices are rising at the fastest rate since 2001
Source link Dutch home prices are rising at the fastest rate since 2001