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Why house prices are surging once again

Is a fresh housing boom under way? In April a house-price index for the world, excluding China, rose by more than 3% year on year (see chart 1). American house prices are 6.5% higher than a year ago, Australian ones are up by 5% and Portuguese ones are soaring. In other countries, the market looks surprisingly strong given years of high interest rates (see chart 2).

Chart: The Economist

Source: Finance - economist.com

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