Will the next financial bubble be real estate?

Will the next financial bubble be real estate?
Will the next financial bubble be real estate?

There is a boom in sale of houses around the world: will turn into real estate bubble?

Analysts and experts have raised the alarm, stressing that the anomalies are all there.

From massive aid from governments and central banks to the frantic and increasingly widespread search for new homes in the face of changed habits with the pandemic, the thrust of application for houses it is at its best.

Come i prices, with the risk of an explosion financial bubble real estate. What to Expect?

Real estate bubble? What happens to house prices

House prices around the world have been rising the most since before financial crisis overall.

In fact, there is a general market frenzy, more evident in countries such as New Zealand, Canada, Singapore, Turkey, USA.

I average real estate prices have increased by 7,3% in the 12 months through March, the fastest pace since the fourth quarter of 2006, according to the report Global House Price Index di Knight Frank.

Turkey tops the list, recording growth of 32%, followed by New Zealand with a jump of 22.1%.

The United States took fifth place with 13.2%, its sharpest increase since December 2005.

In Asia, Singapore recorded the largest price increase with 6.1%, followed by South Korea with 5.8% and Japan with 5.7%.

Hong Kong, the real estate market most expensive in the world, it recorded a growth of 2.1%.

Some governments have run for cover, seeing the risks of a real one financial bomb. New Zealand has removed tax incentives for property investors and the government expects home price inflation to slow by just 0.9% by June next year.

The China has issued a series of measures to curb bank lending to the sector.

What to expect on real estate costs?

The huge tax aid, with interest rates low, have created a favorable scenario for the search for new homes.

The frenzy of the real estate market is to be explained as the growing desire of people to find new living spaces where they can be more comfortable with smart working, or simply more blocks from crowded cities.

The boom in demand, however, did not meet the same supply, placing an imbalance.

What will happen? Will there be a housing bubble bursting?

Knight Frank, an expert in house prices, probably when governments start to withdraw some aid, buyers will be less exuberant.

Furthermore, “The threat of new variants and the introduction of vaccines have the potential to put further downward pressure on price growth

For now, therefore, the question remains open: will there be a real estate bubble?

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