Bubble or boom' Why ultra-low interest rates mean house prices may never bust
Published
Apr 04 2021 at 6:00 PM GMT
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- New Zealand may have moved to curb rising prices but could cheap money have permanently rewritten the rules"It's hard to disagree with the New Zealand government's recent assessment that the country's runaway housing market has moved from mere boom to a bubble that endangers the whole economy.
- Prices rose a staggering 23% over the past year, putting home ownership way beyond most people not already on the fabled ladder " younger, first-time buyers especially.
- If it walks like a bubble and talks like a bubble, then it must be a bubble, right?The only problem is that bubbles might not be what they used to be.
- House prices are being steadily inflated in many other developed economies such as the US and UK.
- In Australia, prices rose 2 8% in March, the fastest monthly growth for 33 years.
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- Published Apr 4, 2021 6:00 PM GMT