Did you think the economic effects of the coronavirus were already over?

The COVID19 crisis and its impact on the global economy has turned real estate markets into slide rides.

Come on, what do we see loops it hasn’t been seen since the 2008 season, I don’t know if you understand me …

Bloomberg and the Horsemen of the Apocalypse: Predicting the Effects of the Housing Bladder

Is a new real estate bubble coming?
Source: Pixabay

“The tremendous stimulus that has helped get the global economy back on its feet is also raising a new problem: housing balloons.”

Thus begins a fateful report announcing a doomsday for the real estate sector – though perhaps a little exaggerated.

It is a study that analyzes five risk variables to predict whether or not there will be a housing balloon:

  • The relationship between prices and income.
  • Real price growth.
  • The relationship between prices and income.
  • Nominal price growth.
  • Annual credit growth.

And from there it develops a classification of countries based on risk. Do you dare to guess where Spain is?

  • Real price growth.

Chaos List: Which countries walk the edge of the home bubble?

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We split the risk cards.

Among the most delicate situations are New Zealand, Canada and Sweden, which are very poorly positioned by all indicators.

However, Norway, the United Kingdom, Denmark or the United States are “not far” from the first and have already launched aid rockets into the sky.

Spain, for its part, is at number 17 – better than at Eurovision. His low position is due credit growth, an indicator of future problems.

Year 2008: more than a summer night’s dream

Smartphone before bed

The year 2008 is remembered by everyone.

As a result, many countries are already taking steps to reduce mortgage risks.

Worrying signs because in the end, as the report warns, “it doesn’t take much memory to recall a time when uncontrolled price rises caused a crisis.”


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