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by Spooky23 1766 days ago
It’s all about the cheap money.

I just refinanced my house for a rate that is effectively negative in real terms right now.

2 comments

Agreed. Some people/institutions have access to more money than can be productively used so they bid up anything that has the potential to make money, be it startups, Bitcoin or housing.
We had even slightly lower interest rate on mortgages in 2017 and the market was nowhere as hot as today.

I am sort-of familiar with real estate market in Prague and Ostrava, two very different cities.

Apartments in Ostrava were hard to sell even with low interest rates, because the city lost 10 per cent of its population - a typical rust belt phenomenon. Even just two years ago, an apartment put on market in Ostrava could be there for half a year before attracting a serious buyer.

They are now hot like hell and more than twice as much expensive.