The European Quantitative Easing (QE) program fuels the housing price bubble. The ultra-low interest rates have set the house prices to soar higher in Germany, United Kingdom and Norway.

Realty Biz News reports that a new study has been conducted and has revealed that Quantitative Easing program that was initiated by European Central Bank has actually "run the risk of causing a property price bubble in several countries due to investors putting money into real estate."

Based on the reports made by Moody's Analytics, three major countries are at stake due to the continued low interest rates including the bond yields. In UK, Norway and Germany, there is already a fast house price growth as an effect to QE.

 Anna Zabrodzka of The Economy has cited four major points as the possible outcome of the QE program that has been started by European Central Bank. She said that the QE would potentially give higher returns from the investment in property markets.  The prices of houses in Germany, Norway and the U.K. would increase quickly, as it would also drive prices even higher. And lastly, "Properties in the largest German, Norwegian and U.K. cities are becoming increasingly overvalued."

It has been in a report that "The International Monetary Fund launched an initiative in late 2014 to track global housing market developments and flag any early signs of bubbles." The purpose of the tracking program is to put off the "buildup of imbalances" in the real estate housing market at the same time steer clear of the financial crisis to recur, which happened in 2008-2009.

Based on the report of the IMF's Global Housing Watch, the house prices have increased rapidly over the last 18 months. It has been noted that the house price growth has run at 2 speeds. One group has bounced back quickly "after just moderate price declines during the financial crisis" but the other group is still yet to pick up from a much sudden price drops.

Business Insider says that Moody's Analytics has cautioned that "the European Central Bank's €60 billion-a-month quantitative easing (QE) program might be creating a housing bubble in the UK, Germany and Norway."  The warning has been reported by The Financial Times.