Business

EU house prices are rising at the fastest pace since 2007

EU home prices are the fastest in almost 14 years in the first three months of the year, driven by low interest rates and high household savings, despite the historic economic damage caused by the coronavirus pandemic. It rose at a pace.

House prices across the block rose 6.1% annually in the first quarter, up from 5.8% in the last three months, the fastest since the third quarter of 2007, according to data released by Eurostat on Thursday. It was the pace of.

House prices in the euro area have risen 5.8%, the fastest since the end of 2006.

Home prices include UK and US as unprecedented stimulus introduced by major central banks to counter the economic impact of pandemics has pushed liquidity waves into financial markets and pushed up mortgage rates Most developed countries record sharply high lows in recent months.

Ricardo Amaro, an economist at Oxford Economics, said the “strong momentum” in EU home prices is likely to continue for the rest of 2021.Strong rebound in broader economic conditions from a supportive interest rate environment [the second quarter] Or later. “

Average mortgage rates across the euro area fell below 1.6% in the first five months of the year, the lowest ever, down from the 2008 peak of 5.7%, according to another European Central Bank data. Not only does this mean that more people can take out a mortgage, but buying is cheaper than renting and contributes to an increase in the number of buyers.

Many households, despite the economic turmoil, thanks to government support to keep people working during the pandemic and reduced consumer spending during the blockade that boosted savings. It remained relatively healthy.

The increase in telecommuting has also stimulated housing demand and has created a wave of home relocation as people seek more living space.

Jessica Hinds, an economist at Capital Economics, said the rise in prices was the ECB’s “very expanded monetary policy, government support for employment with significantly protected employment and income, and the imposition of a moratorium on mortgage payments.” Said that it reflects.

But she added that the trend didn’t look like a housing bubble. “The valuation doesn’t seem to be expanding significantly, and housing investment isn’t looking active,” she said.

Germany reported the fastest price increase among the EU’s major economies at 9.4%. Countries such as Denmark, the Czech Republic and the Netherlands recorded double-digit annual price increases.

In contrast, Spain’s real estate price hike fell to 0.9% from its 10-year high of 7% in the third quarter of 2018.

These numbers were released just hours before the ECB announced the results of its first strategic review for nearly 20 years. It is expected to discuss the economic impact of housing costs, among other issues.

EU house prices are rising at the fastest pace since 2007

Source link EU house prices are rising at the fastest pace since 2007

Back to top button