Booming Housing Prices Create a New Dilemma for Big Banks

The real estate market has been crazy this year to the say the least. Post COVID there has been a boom in housing prices with many sellers getting over asking for their homes. This has been a great thing for sellers but a proven test for banks ability to rein in crisis.

According to Bloomberg News “withdrawing stimulus to slowly risks inflating real estate further and worsening financial stability concerns in the longer term. Pulling back too hard means unsettling markets and sending property prices lower, threatening the economic recovery from the Covid-19 pandemic.”.

Central banks in New Zealand, South Korea and Canada meet to set policy, in an attempt to do something to keep homes affordable for regular workers. Hopefully central banks can come to a consensus and keep balance.

Housing markets are already showing signs of a similar 2008 bubble warnings and showing financial imbalances and deepening inequality.

Check out the full article via the source of Bloomberg News.