it's not just the Fed, the ECB is also lowering rates into higher inflation

it's not just the Fed, the ECB is also lowering rates into higher inflation this puts upwards pressure on both, real estate purchase and rent prices so you can expect both - house prices and rents - to increase throughout the next 2 years

i've previously written an article about what makes real estate so special in terms of funding/re-funding capacity banks finance ≈75% LTV on real estate purchases, and you can use existing properties as additional collateral 🧵read it here: https://illya.sh/threads/@1757632740-1.html

these dynamics create an incentive for further upward price pressure: ➖ purchase prices raise due to low rates and ample financing ➖rent prices raise because purchase prices become too high