Home prices in the U.S. are rising to new levels, even surpassing pre-crisis levels in some metros, but home prices in the U.S. are relatively low compared to other developed nations.
Over the past few years in the U.S., home prices peaked in July 2006, troughed in February 2012 and have since returned to pre-crisis levels once again. However, this wasn’t the case for other developed nations. Other G10 economies never saw a downturn, and have continued increasing.
Now, some are concerned about broader consequences if the real estate markets go south, according to a report from Goldman Sachs. The report explains there are no imminent problems in G10 markets, but current imbalances could worsen cyclical weakness later.
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