Housing Boom In Five Countries Raising Concern

Rapidly rising housing prices are “most severe” in five developed sovereign regions of the world and are occurring alongside increased indebtedness, an HSBC report observes. The situation will create challenges for policy makers, with implications for potentially higher interest rates and related currency values. The problem is the nexus of “bubbly asset prices” with debt can derail growth “or even act as the catalyst for a downturn.”

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US housing prices have been rapidly rising, but...

In the US, housing prices, particularly in hot coastal urban areas, are pushing middle-income residents out of the market. In the Anaheim / Irvine California, area, the median home now costs $745,200 and requires a salary of $136,234 to become a homeowner, according...