Before the 2008 crash, housing seemed like a safe bet. A refuge in times of uncertainty that, according to experts, would never stop appreciating. But then the bubble burst housing collapsed to record lows and dragged the entire financial system down.
Since then, banks have looked at the brick with suspicion. Even when the economic recovery is sensed around the corner, like now. The latest financial stability report from the
European Central Bank (ECB) points directly to the residential sector, warning that while price growth “remains buoyant,” the risks of a correction “are high.” Especially because of the high overvaluation that