Bubble or boom? Why ultra-low interest rates mean house prices may never bust - Capital Economics

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Bubble or boom? Why ultra-low interest rates mean house prices may never bust

04 April, 2021The Guardian

Ben Udy, Australia and New Zealand economist at the consultancy Capital Economics, expected prices to keep rising while rates were so low. “We don’t think asset classes are overvalued or ripe for bubble bursting,” he says. “Long-term house prices depend on supply relative to demand. Short-term, some people have more money because of the lockdown and that has caused prices to rise.”

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