Pursuits
ECB Warns of Dangers of `Ripple Effect' From House Price Boom
- House prices in capital cities showing ‘excessive exuberance’
- Trend could threaten lenders with concentrated local exposure
Draghi Sees No Reason to Deviate From ECB Guidance
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The European Central Bank warned there may be “excessive exuberance” in some European housing markets, driven in part by foreign buyers, that could spread to other areas in a “ripple effect.”
Since 2010, house prices in European capital cities have risen far more than national averages, the Frankfurt-based central bank said in its Financial Stability Review published on Wednesday. The ECB cited Berlin, Paris, Vienna and Amsterdam as cities that have performed particularly well.