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Germany’s central bank warned Thursday about skewed valuations in the housing market, calling it a “specific vulnerability” as property prices continue to soar.
“We have basically seen all indicators — prices, credit — those indicators kept increasing in Germany and you don’t really see a big effect of the pandemic,” Claudia Buch, vice-president at the Bundesbank said.
Speaking to CNBC’s Karen Tso, she added that her team at the Bundesbank has come up with estimates of about 10% to 30% for price deviations from their fundamentals.
“What’s a bit of a new development is that these overvaluations are also more widespread, so they are outside of the big cities … [and] almost 90% of the…
Source cnbc.com
