House prices have been on the rise for some time now and are rising most in twenty years in almost all rich countries.

In the first three months of this year, prices fell in only three of the forty OECD countries, the British business newspaper

Financial Times reported on

Sunday evening.

Houses have been getting more expensive every year since just after the banking crisis, but prices rose sharply in the year of the corona pandemic.

And in the first quarter of this year, prices rose 9.4 percent worldwide.

According to experts, this is due to government measures and lockdowns, which means that people have more money left and can therefore offer more for a house.

Buyers are also becoming more picky, because they want a suitable workplace in their home to enable them to work from home.

Prices rose sharply, especially in New Zealand, India, the United Kingdom and Hungary.

A strong increase was also visible in the Netherlands and neighboring countries, but prices - with the exception of Germany - remain below the average level of all OECD member countries.

Prices in Russia, among others, fell.

According to Claudio Borio, who heads the Bank for International Settlements (the bank for central banks), it is positive in the short term that house prices are rising so strongly.

"People who already own a house feel richer and spend more because their wealth is greater," he told the

Financial Times

.

But if the trend continues, it could lead to more debt, he says.

Other experts also warn in the newspaper of a bubble, as house prices are rising faster than our income.

This makes houses less affordable for an increasingly large group.

Although there is one big difference with the housing bubble of fifteen years ago, the

Financial Times

writes

:

central banks are more vigilant.

For example, the European Central Bank (ECB) recently included house prices in its inflation calculation. "The fact that policymakers are now more concerned with this prevents a scenario such as in 2008 when the market collapsed," says economist Aditya Bhave.

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