InternationalMarkets & Economy

Quantitative easing could result in overvalued European homes

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Are you set up for success in 2016? Join 2,500 real estate industry leaders Aug. 4-7, 2015, at Inman Connect in San Francisco. Get Connected with the people and ideas that will inspire you and take your business to new heights. Register today and save $100 with code Readers. Takeaways: Quantitative easing by the European Central Bank could result in housing price bubbles in Germany, Norway and the U.K. Since 2010, average home prices in Norway have risen by more than 30 percent. In Germany and the U.K., values have risen by nearly 25 percent and 15 percent, respectively. The greatest risk of a bubble lies in Norway. While the U.S. housing market is in recovery mode -- with sales activity and home values rising amidst low inventory -- the single-family environment in Europe is entering potentially risky territory. According to Moody’s Analytics, the European Central Bank’s quantitative easing program -- a €60 billion a month asset-buying agenda -- may result...