2017-11-03 12:45

Bubble? What Bubble? Nordic Economists Dismiss Housing Concerns

Anders Wiklund / TT kod
Anders Wiklund / TT kod
Scandinavia‘s red-hot property markets may be showing signs of cooling, but rumors of a bursting bubble are greatly exaggerated.

That‘s the consensus among local economists, who point to strong fundamentals and persistently low interest rates as evidence that the downturn is a „healthy re-balancing“ rather than a harbinger of an imminent collapse.

„If you ask me what is the main risk to the macro scenario, I‘d say it‘s probably house prices,“ said Erik Bruce, senior economist at Nordea Bank in Oslo. „But I find it hard to see them dropping significantly with interest rates at this level, unemployment falling and optimism coming back.“

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