ECB warns of housing bubble risks across European countries

The housing market has been one of the beneficiaries during COVID-19 pandemic as prices increased on account of higher demand for more space (lockdowns and work-from home), significant higher savings that households have accumulated during this period, but also fiscal and monetary stimulus that brought interest rates at a lower level. As per Eurostat data, in the second quarter of 2021, housing prices increased by 6.8% in the euro area and by 7.3% in the EU comparing with the same quarter of 2020, representing the highest annual increase for the euro area since the 4th quarter of 2006 and since the 3rd quarter of 2007 for the EU.
In this alert you will read more about NPL ratio and the early signs of stress in the European Banking sector.