Banks have lowered their credit standard to a level not seen since the late 80's.
So what we have been witnessing is a double digit inflation in housing price and at the same time the wage were unable to keep the same pace. I'm not even talking about rising import prices meaning that the last two decade of cheap import has come to an end, eroding further the house purchasing power.
What has been the solution to solve this economical "equation" in the past ? High Wage growth or second round effect as refered by the ECB. How did the monetary policy handle such event? interest rate increase unless... a recession comes then asset price and wage growth collapse.