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> pushing house price growth to over 7%, its fastest rate since 2005. It seems that, like inflation, the EU sees the same trends as the US but with the value r

> pushing house price growth to over 7%, its fastest rate since 2005. It seems that, like inflation, the EU sees the same trends as the US but with the value roughly divided by 2. However, in the US, the west&east coasts (especially suburbs) and a few metros (Austin, Denver, ...) the numbers are probably 4x that, so I wonder if in EU there is a similar trend, with some hotspot cities.

Hermel 5y ago
Year-on-year inflation for producer prices currently stands at 14.2% in Germany. So it is actually already quite high. https://www.destatis.de/DE/Themen/Wirtschaft/Preise/Erzeugerpreisindex-gewerbliche-Produkte/_inhalt.html https://www.destatis.de/DE/Themen/Wirtschaft/Preise/Erzeuger...
sime2009 5y ago
The whole Netherlands is a hotspot. Something like a 20% increase in house prices in the last 12 months.
- alexbiet 5y ago
  Most of the houses listed on the Dutch real estate market sell for +€60K-€100K OVER the asking price. It's insane! Most people (teachers, nurses, etc) are on €35K-45K or less gross annual salary. Cut out ~50% taxes/healthcare and living expenses and calculate how many people can afford a €500K two-bedroom apartment from '72 near Amsterdam. Also, be prepared to drop another €20K on middlemen, notaries and tax to finalize the home purchase.
  - phicoh 5y ago
    The suprising thing is not that houses are expensive in Amsterdam (though 500K buys quite a bit of house just outside of Amsterdam), but that houses are unaffordable for average people throughout The Netherlands. It seems obvious to blame local governments all over The Netherlands who fail to make enough space available for building new houses.
  - thatfrenchguy 5y ago
    I mean, to be fair, paying 20% over asking in the San Francisco Bay Area has been just a normal fact of life in the last 10 years.
hogFeast 5y ago
It varies the same as in the US. In the US, housing in Detroit is very cheap but few people want to live there. In Europe, housing in Bratislava is very cheap but few people want to live there. The issue with housing is that rates are very low but there are parts of Europe, just like in the US, that have been performing well economically so low rates just pour fuel on the flames (without really helping the parts that aren't doing well). This also applies to some countries, like Denmark, that have pegged their currency to the EUR (I have no idea how the Demark peg is sustainable, it makes no sense, they had strong growth, unemployment below the natural rate/serious supply issues pre-Covid, and negative interest rates...this is not a good idea, because their mortgage market is heavily securitized the impact of this likely won't come out for years i.e. when the people who have invested in the covered bond market come to pay out to retirees, and those people find out they don't have enough to retire ever).
- ptsneves 5y ago
  Between Detroit and Bratislava there is not doubt about where I would live. Bratislava is a very beautiful city. Detroit from what I heard has vast swaths of urban area completely abandoned or squatted. I would be surprised if Bratislava also does not have a buble as most central eastern Europe is undergoing strong growth.
  - hogFeast 5y ago
    Most of Eastern Europe is depopulating. Bratislava is nice but Munich or Paris is nicer because you can earn more money there.
- sofixa 5y ago
  > This also applies to some countries, like Denmark, that have pegged their currency to the EUR (I have no idea how the Demark peg is sustainable, it makes no sense Do they have a choice? I was under the impression that all EU members agree to join the eurozone (without a time limit, so they can just stall forever, like Denmark seems to be doing), and peg their currencies to the euro pending them joining the eurozone.

Hermel 5y ago

Year-on-year inflation for producer prices currently stands at 14.2% in Germany. So it is actually already quite high. https://www.destatis.de/DE/Themen/Wirtschaft/Preise/Erzeugerpreisindex-gewerbliche-Produkte/_inhalt.html https://www.destatis.de/DE/Themen/Wirtschaft/Preise/Erzeuger...

sime2009 5y ago

The whole Netherlands is a hotspot. Something like a 20% increase in house prices in the last 12 months.

alexbiet 5y ago
Most of the houses listed on the Dutch real estate market sell for +€60K-€100K OVER the asking price. It's insane! Most people (teachers, nurses, etc) are on €35K-45K or less gross annual salary. Cut out ~50% taxes/healthcare and living expenses and calculate how many people can afford a €500K two-bedroom apartment from '72 near Amsterdam. Also, be prepared to drop another €20K on middlemen, notaries and tax to finalize the home purchase.
- phicoh 5y ago
  The suprising thing is not that houses are expensive in Amsterdam (though 500K buys quite a bit of house just outside of Amsterdam), but that houses are unaffordable for average people throughout The Netherlands. It seems obvious to blame local governments all over The Netherlands who fail to make enough space available for building new houses.
- thatfrenchguy 5y ago
  I mean, to be fair, paying 20% over asking in the San Francisco Bay Area has been just a normal fact of life in the last 10 years.

hogFeast 5y ago

It varies the same as in the US. In the US, housing in Detroit is very cheap but few people want to live there. In Europe, housing in Bratislava is very cheap but few people want to live there. The issue with housing is that rates are very low but there are parts of Europe, just like in the US, that have been performing well economically so low rates just pour fuel on the flames (without really helping the parts that aren't doing well). This also applies to some countries, like Denmark, that have pegged their currency to the EUR (I have no idea how the Demark peg is sustainable, it makes no sense, they had strong growth, unemployment below the natural rate/serious supply issues pre-Covid, and negative interest rates...this is not a good idea, because their mortgage market is heavily securitized the impact of this likely won't come out for years i.e. when the people who have invested in the covered bond market come to pay out to retirees, and those people find out they don't have enough to retire ever).

ptsneves 5y ago
Between Detroit and Bratislava there is not doubt about where I would live. Bratislava is a very beautiful city. Detroit from what I heard has vast swaths of urban area completely abandoned or squatted. I would be surprised if Bratislava also does not have a buble as most central eastern Europe is undergoing strong growth.
- hogFeast 5y ago
  Most of Eastern Europe is depopulating. Bratislava is nice but Munich or Paris is nicer because you can earn more money there.
sofixa 5y ago
> This also applies to some countries, like Denmark, that have pegged their currency to the EUR (I have no idea how the Demark peg is sustainable, it makes no sense Do they have a choice? I was under the impression that all EU members agree to join the eurozone (without a time limit, so they can just stall forever, like Denmark seems to be doing), and peg their currencies to the euro pending them joining the eurozone.