Financial Stability / Prices

Laura Valderrama: European Housing Markets at a Turning Point

Laura Valderrama

March 24, 2023

In This Episode

The last few months have witnessed tensions in Europe's housing markets as the cost-of-living crisis has eroded real incomes and the surge in interest rates has made borrowers more vulnerable to financial distress. Laura Valderrama is a macro-financial expert and coauthor of new research that suggests house prices across Europe are overvalued, and housing markets are at risk of a price correction that could undermine the region's economic recovery.  Transcript

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Laura Valderrama is a senior economist in the IMF European Department.

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