4 ms·

I’m more curious how it started.

beiller 4y ago
Banking oligopoly is my guess. You see similar problems in Australia which has a similar banking setup. New Zealand I don't know how their banks work, but I do know they are up there in the clouds as well. Same deal?
giarc 4y ago
Mortgage rates of 1.x% probably didn't help.
- tiborsaas 4y ago
  Yearly 1% is very cheap, we have around 6% in Hungary :)
  - giarc 4y ago
    We are now up to ~4.5% for fixed interest mortgages and ~2.5% for variable rate mortgage. But in the depths of the pandemic, the rates went near 0.
  - retcon 4y ago
    And that's at your lower bound. Here's why: Edit putting this here as intended Viktor Orban's Bank" Financial Times feature of this morning. https://archive.ph/tINOK https://archive.ph/tINOK This won't help "Hungary Loses the trust of its European neighbours"https://archive.ph/rXucw https://archive.ph/rXucw. Also FT earlier . I contrast these articles because Orban ended foreign currency and foreign banks mortgage loan supply and nationalized the risks, now linking domestic mortgages to the political situation which is for everyone now a reckoning but any reckoning Orban isn't the best prepared for.
RedShift1 4y ago
I think it started with mostly foreigners buying up property, not to live in but as investment to keep the value of their money, like using housing as an alternate currency to dollars
- jmspring 4y ago
  I have been venturing to Vancover BC for the better part of the last 30 years. In that time, there were waves of hippies selling in Kits and moving to the Okanagan, etc. Prices went up. What has happened in the last 15+ years is a noticable vacancy when you look at housing as you walk around. An influx of foreing money has been buying up and keeping properties vacant. This is happening all up and down the west coast. Some of that money may not be foreign, but a lot is. BC has attempted a lack of occupancy tax and it seems like it's not working.
  - epicureanideal 4y ago
    But if we were able to build to keep up with demand, in theory the price would not increase so sharply...
halostatue 4y ago
AirBnB investors, flippers, and other speculative purchasers.

Banking oligopoly is my guess. You see similar problems in Australia which has a similar banking setup. New Zealand I don't know how their banks work, but I do know they are up there in the clouds as well. Same deal?

giarc 4y ago

Mortgage rates of 1.x% probably didn't help.

tiborsaas 4y ago
Yearly 1% is very cheap, we have around 6% in Hungary :)
- giarc 4y ago
  We are now up to ~4.5% for fixed interest mortgages and ~2.5% for variable rate mortgage. But in the depths of the pandemic, the rates went near 0.
- retcon 4y ago
  And that's at your lower bound. Here's why: Edit putting this here as intended Viktor Orban's Bank" Financial Times feature of this morning. https://archive.ph/tINOK https://archive.ph/tINOK This won't help "Hungary Loses the trust of its European neighbours"https://archive.ph/rXucw https://archive.ph/rXucw. Also FT earlier . I contrast these articles because Orban ended foreign currency and foreign banks mortgage loan supply and nationalized the risks, now linking domestic mortgages to the political situation which is for everyone now a reckoning but any reckoning Orban isn't the best prepared for.

RedShift1 4y ago

I think it started with mostly foreigners buying up property, not to live in but as investment to keep the value of their money, like using housing as an alternate currency to dollars

jmspring 4y ago
I have been venturing to Vancover BC for the better part of the last 30 years. In that time, there were waves of hippies selling in Kits and moving to the Okanagan, etc. Prices went up. What has happened in the last 15+ years is a noticable vacancy when you look at housing as you walk around. An influx of foreing money has been buying up and keeping properties vacant. This is happening all up and down the west coast. Some of that money may not be foreign, but a lot is. BC has attempted a lack of occupancy tax and it seems like it's not working.
- epicureanideal 4y ago
  But if we were able to build to keep up with demand, in theory the price would not increase so sharply...

halostatue 4y ago

AirBnB investors, flippers, and other speculative purchasers.