House prices are going ballistic | Curio

House prices are going ballistic

6 mins | Apr 14, 2021

Policymakers need to keep their heads. “Home values, like the price of other assets, have been boosted by low interest rates and fiscal stimulus. Many households have spare cash sloshing around — savings rates have increased by more than half in the rich world — and borrowing has rarely been cheaper. Separately, COVID-19 has caused a shift in demand away from big cities to housing in less crowded places. The expectation that commuting may no longer be daily has caused house prices in suburban locations to rise faster than in cities — reversing a decade-long trend.”

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From The Economist