Implode-o-Meter News - Looking into the Japanese real estate mirror: Residential home prices in Japan back to levels last seen 30 years ago in spite of near zero percent mortgage rates.

This year marks a troubling anniversary for the Japanese housing bubble. Japan residential property values are now back to where they were 30 years ago (in 1983). This is happening in a market where 30 year mortgage rates are routinely in the 2 percent category and many longer-term mortgages can be near zero percent. Yet property values do not move because household incomes are stuck. Japan's GDP is now back to levels last seen in 1995. There is a cost to narrowly focusing your central bank on bailing out the banks to boost the real estate sector

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Looking into the Japanese real estate mirror: Residential home prices in Japan back to levels last seen 30 years ago in spite of near zero percent mortgage rates.