Interest rates almost in negative territory, while housing prices go to roof.
These are symptoms that we are witnessing in many countries that expierenced/experiencing ''stimulus'' in form of Quantitative Easing.
At this moment its useless to start questioning if the ECB's policy doesnt havy any dangers or unwanted side-effects, because the statistics that the Dutch people received this morning made this painfully clear.
Last quarter more then 27% of the houses were sold for more then the original price. Amsterdam even expierenced a staggering 79% !!
The last peak was in Q1 of 2008 were houses were overbid 10% nationwide, this is 17% lower then the current 27%.
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The dutch housing market is strongly embedded in the economic performance of the country overal. This makes the picture above more worrying. This is not structural economic growth, but a bubble thats going to leave a lot of people in tears, because of the debt they are never able to pay back. You dont have to be a genius to see this.
For decades The Netherlands was a (small) economic powerhouse. The housing market however could bring the whole country to its knees.
Leave it to an Italian (Mr Draghi) to create a bubble and destroy a countries economy.