An ongoing theme we kept coming back to throughout 2015 in the eurozone is that monetary policy tends to either too hot or too cold for the core or periphery.  The ECB’s attempts to fight deflation and reflate the periphery have fuelled increases in German mortgages outstanding, supporting house prices.  German building permits growth is also accelerating.

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Also owner-occupancy rates remain among the lowest in Europe.

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German households also only hold about half of their wealth in real-estate assets.  Against a backdrop of easy monetary policy, German housing still has plenty of room to rise.