Housing View – November 19, 2021

On cross-country:

  • ECB warns of ‘exuberance’ in housing, junk bonds and crypto assets. Investors taking risks in search for yield has left markets ‘susceptible to correction’ – FT
  • ECB sees rising risk that housing bubble will burst – Reuters
  • The euro area housing market during the COVID-19 pandemic – European Central Bank
  • As housing costs rocket, governments take aim at large investors. The approach is politically expedient, but it may not make housing cheaper – The Economist
  • The oldest asset class of all still dominates modern wealth. Low interest rates in advanced countries have pushed money into real estate instead of business investment – FT
  • Making Homes More Affordable in IDA Countries Through Expanded Mortgage Financing – World Bank

On the US:   

  • Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1 Million as Prices Soar. Scheduled increase in loan limits is a boon for borrowers but also stokes debate over government’s role in housing market Wall Street Journal
  • A Housing Gift for Beverly Hills. Just what the economy doesn’t need: subsidies for $1 million mortgages. – Wall Street Journal
  • Homes Now Typically Sell in a Week, Forcing Buyers to Take Risks. Buyers are often waiving traditional safeguards in fast-moving market where median price has climbed – Wall Street Journal and Quartz
  • Democrats have no plan to fight housing inflation. Home prices have skyrocketed, and the White House’s plan will do basically nothing to stop it. – Vox
  • Why building more affordable housing won’t solve the crisis – Yahoo
  • Housing inflation is getting worse. Will Biden’s ‘Build Back Better’ program help renters and buyers? – MarketWatch
  • States can improve housing well-being through thoughtfully designed policies – Brookings
  • How the Pandemic Worsened a Housing Crisis in the Bronx. In a New York City borough where residents have long struggled to afford their homes, thousands are now threatened with eviction as state pandemic aid dwindles. – New York Times
  • Mortgage Refinance Costs and a Better Adjustable-Rate Mortgage Contract – Richmond Fed
  • Biased appraisals and the devaluation of housing in Black neighborhoods – Brookings
  • Grown Kids Still Stuck at Home? Change Is on the Horizon. Someday, surely, all the young adults still living with their parents will form their own households, creating steady housing demand. But only if prices stop going up so fast. – Bloomberg
  • Want More Affordable Housing and Health Care? Here’s a Fix. – New York Times
  • Despite Supply Chain Issues, U.S. Builder Confidence Upticks in November – World Property Journal
  • What Went Wrong With Zillow? A Real-Estate Algorithm Derailed Its Big Bet. The company had staked its future growth on its digital home-flipping business, but getting the algorithm right proved difficult – Wall Street Journal  
  • Research: Restricting Airbnb Rentals Reduces Development – Harvard Business Review

On China

  • China home prices fall as property slowdown threatens economic outlook. Beijing introduced measures aimed at constraining borrowing at developers over asset bubble fears – FT
  • Worst yet to come for China’s housing market as new home prices fall by most in 6 years. The average price across 70 cities dropped 0.25 per cent in October from the previous month, data shows, as analysts warn that doesn’t give the full picture. Developers are seeing a big slump in sales amid a credit crunch sparked by the debt crisis at China Evergrande – South China Morning Post
  • How Wealth Products Helped Inflate China Real Estate – Quartz
  • China’s real estate woes sap property investment products – Reuters
  • China walks a tightrope on property clampdown – Reuters

On other countries:  

  • [Canada] Housing Market Heats Back Up in Canada With 8.6% Jump in Sales – Bloomberg
  • [Israel] Bank of Israel Plans to Increase Competition in Mortgage Market – Bloomberg
  • [Spain] If health and education are essential services in Spain, why not housing? A renters’ movement in Catalonia is saving families from eviction and trying to fill the gap left by the state – The Guardian
  • [Spain] Spain takes on private equity landlords as cost of housing soars. Blackstone and others could face rent caps in bill championed by leftwing government – FT
  • [Switzerland] The Local Effects of Relaxing Land Use Regulation on Housing Supply and Rents – SSRN

Posted by at 5:00 AM

Labels: Global Housing Watch


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