step three Logical gadgets having assessing home loan lending character and you may family balance sheet resilience
Graph 1
Overvaluation measures indicate the level of RRE rate misalignment, and so are made use of, along with other relevant indications, in order to assess the latest drawback threats to RRE prices
Sources: ECB and you can ECB calculations.Notes: Panel a good) The latest overvaluation prices derive from an average of a couple of strategies: an econometric model and domestic speed-to-income proportion deviation away from historic mediocre. To possess details, find Box 3 Systems for finding a possible misalignment out-of home costs regarding basics throughout the problem of the new ECB Financial Stability Remark, and/otherwise Package 3 An unit-centered valuation metric getting homes dilemma of the fresh new ECB Financial Balance Feedback.