Yesterday we talked about one small market in the US… but in fact there are dozens of cities across the world where property prices entering (or already in) a bubble.
San Francisco. Amsterdam. Stockholm.
Vancouver is infamous for its astonishing real estate bubble, which the government has tried to slow by slapping a nasty transfer tax on certain property transactions.
In London, prices are 15% higher than the previous real estate market peak in 2007. Yet income levels are 10% lower.
It’s the same in Hong Kong, Frankfurt, and a number of other major cities – real estate prices have surpassed their all-time highs, yet income growth is flat (or negative).
People in Denmark are particularly troubled – Danish home prices are well above their peak levels from 2006.
As a result, Danes have had to borrow extraordinary amounts of money in order to survive.
At more than three times disposable income, Danish household debt has set a new record among OECD nations.
This post was published at Sovereign Man on September 29, 2016.