Housing bubbles in Austria and Germany?

I note a story in Austrian daily Kurier today that bears watching. Since the Great Financial Crisis began, Austrian house prices have zoomed at a pace well above the rate of inflation and the rate of rentals. The price action and other anecdotes make this sound suspiciously like a bubble.

What Schwarz has observed in his everyday, Wolfgang Feilmayr from the Technical University of Vienna has put to numbers: While consumer prices rose by 5.7 percent from 2008-2011, prices for condominiums in Vienna climbed by 37 percent since the financial crisis. Only with rents does Feilmayr give the all clear: "Rents are not developing nearly as strong, they are at the level of inflation."

The article goes on to describe a lot of bubblicious phenomena. For example, it notes that ent...


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