What happened? The European Commission has published a number of documents for the autumn economic forecasts, including information about the housing market. The Commission concluded that housing prices in the European Union continue a dynamic upward trend since 2013 and now grow sharply. On average, in the alliance from 2013 to the second quarter of 2021, housing has risen in price by 31.53%.
Reasons. According to the European Commission, the sharp rise in housing prices is caused by steady demand supported by economic growth, historically high household savings, and low-interest rates, while supply was affected by limited construction activity.
Overvalued and undervalued markets. The European Commission says that housing prices are inflated in about half of the EU countries due to a sharp rate of price growth, even though the fundamental factors of price growth may be strong.
Source: The Irish Times