The Unassuming Economist | House Prices in Belgium

Showing posts with label Global Housing Watch. Show all posts

Friday, March 13, 2015

House Prices in Belgium

A new IMF paper “(…) argues that current house prices are closer to their equilibrium than simple historical ratios would suggest and that given the moderate overvaluation, a gradual and limited adjustment seems a plausible scenario. Strong household balance sheets, a seemingly well-managed mortgage market and various institutional characteristics reduce the risk of an abrupt correction. Given that historical house price changes have had moderate macro-economic effects – with the exception of residential investment – the repercussions of a gradual decline seem manageable.”

Moreover, the paper says that “there is a continued need for vigilance and policy coordination. Recent changes in macro-prudential and fiscal policy seem appropriate to make the housing market safer and reduce untargeted fiscal expenditures. To assure that the price adjustment remains orderly and does not lead to overshooting, future policy changes should be gradual and coordinated among different institutions. A well communicated housing strategy could help to avoid price mis-alignments in the future.”

Posted by Prakash Loungani at 2:32 PM

Labels: Global Housing Watch

Wednesday, March 4, 2015

House Prices in Malaysia

“Although there are signs of cooling in the housing market and personal lending growth has been curtailed, financial vulnerabilities remain due to high household debt and elevated house prices,” according to the new IMF report on Malaysia. Specifically, it says “House prices have risen steadily (…) outpacing incomes and rents. Although population growth is strong this cannot fully explain the increase in house prices compared with other countries. However, there are tentative signs of cooling in the housing market in Kuala Lumpur. Residential supply is increasing (…) and is particularly strong in Johor and has recently recovered in KL.”

Posted by Prakash Loungani at 3:05 PM

Labels: Global Housing Watch

House Prices in Malta

“After a period of downward correction in 2008-09, Malta’s housing market seems to have stabilized,” notes the latest IMF report on Malta. However, the report says that “One of the main risks facing core domestic banks relates to their exposure to the real estate sector. Around two thirds of loans extended by banks are secured with real estate collateral, and mortgages are one of the few segments of bank loans which have been increasing recently (unlike loans to NFCs). It is important to continue mitigating the risk of exposure concentration to the real estate sector by the application of a cautious collateral valuation and conservative loan-to-value ratios. There is also room to enhance the loan foreclosure process by advancing judicial reform. This risk can be exacerbated by the weak performance of the EU countries, generating negative spill-over effects on the Maltese economy and its financial sector. “

Posted by Prakash Loungani at 2:58 PM

Labels: Global Housing Watch

Wednesday, February 25, 2015

Global Housing Watch Newsletter

The February issue includes:

IMF’s latest assessment on Canada’s housing market and a new working paper on differences in house price behavior across advanced and emerging markets.
Experts views on how diverging monetary policy rates and currency volatility will affect housing markets.
Was fraud a cause of the U.S. housing crash of seven years ago? Yes and no, says new research.
Other views and analysis on housing markets:

Cross-country work: two reports from a World Economic Forum initiative on detecting when and why housing bubbles emerge and how consequences can be mitigated. Another report from McKinsey Global Institute that examines the evolution of debt across countries and assesses the implications of higher leverage in the global economy. Also, a tool that map the institutional components of property markets and evaluate their effectiveness, developed by Center for International Private Enterprise and the International Real Property Foundation. Finally, the latest house price developments by the BIS.
A new book: Zillow Talk: The New Rules of Real Estate by Spencer Rascoff and Stan Humphries
Country specific: Australia, Belgium, Canada, China, Denmark, Germany, Hong Kong, India, Israel, New Zealand, Peru, Sweden, Singapore, Spain, Switzerland, United Kingdom, and United Sates.

Read the full newsletter here.

The February issue includes:

IMF’s latest assessment on Canada’s housing market and a new working paper on differences in house price behavior across advanced and emerging markets.
Experts views on how diverging monetary policy rates and currency volatility will affect housing markets.
Was fraud a cause of the U.S. housing crash of seven years ago? Yes and no, says new research.
Other views and analysis on housing markets:

Cross-country work: two reports from a World Economic Forum initiative on detecting when and why housing bubbles emerge and how consequences can be mitigated.

Read the full article…

Posted by Prakash Loungani at 5:46 PM

Labels: Global Housing Watch