While this may to a degree reflect fundamental factors such as a shortage of land for single-family house development in some large metropolitan areas, there is also abundant anecdotal evidence that building has been spurred by investor demand, and is therefore more susceptible to changes in buyer sentiment. The strength in housing activity has also been reflected in rising house prices.
In fact,  BIS central bankers’ speeches  1  sometimes I thought they came in looking for a sounding board for their ideas as much as they were looking for money. At times, especially during the economic downturn of the early 1990s, I had to deal with problem loans. Some were resolved through restructure and some through foreclosure.