Housing prices in Latin America: notably strong, though free of significant risks

Summary

The surge in housing prices in Latin America does not seem to be associated with the emergence of a real estate bubble. The price-rise is being driven by growing housing demand, which is in turn being fuelled by a wealthier middle class. Housing prices could be considerably over-valued in Brazil and, to a certain extent, in Colombia. The macroeconomic impact of any correction would be minimal, given the low share which mortgage loans account for out of total credit

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