Scary Istanbul House Price Boom
There is a rising concern that house prices in Turkey are increasing at an unsustainable rate. According to the Turkish Central Bank’s data, Turkish house prices have consistently grown for the last several years. The chart below shows the rise in inflation adjusted housing prices in the country and specifically in three of the country’s largest cities, Istanbul, Ankara and Izmir. Istanbul’s whopping home price surge means that its housing bubble may be able to slam London’s or...
Turkey: Housing Bubble Update
Turkey’s house prices bull market momentum as a consequence of years of negative real interest rates policy, which is somehow called tight by Central Bank of Turkey, is rapidly translating into positive economic data as illustrated not by the unemployment rate surging to 9.9% in seasonally adjusted terms, or the GDP growth reported to be occurring at an annual rate of 2.1% substantially missing analysts’ expectations, but by the house prices rising, crazy-madly in some parts.
The...
A Housing Bubble in Turkey?
The biggest failure of modern capitalism has been the housing bubble that led a big financial crisis several years ago. The United States housing market collapsed following the increasing foreclosure rates, than huge loss for the banks by assets invested in mortgage market, unprecedented bail-outs by government and other consecutive undesirable events in market followed. The U.S. Federal Reverse is still trying to heal the market with its billions of dollars asset-purchasing program to improve the liquidity in...