House prices threaten stability

By Chris Giles and Scheherazade Daneshkhu in London
Published: May 23 2006 20:24 | Last updated: May 23 2006 20:24

Overvalued housing markets and rising long-term interest rates represent one of the greatest combined risks to advanced economies, the Organisation for Economic Co-operation and Development said on Tuesday.

The housing markets of the US, Spain, France, Ireland and Sweden were most at risk, with a greater than 50 per cent chance of seeing a drop in real prices if prices continued to rise this year and long-term interest rates went up.