FRANKFURT The euro zone housing market is not overheating but there are pockets of elevated prices which require attention, especially around major cities, European Central Bank Vice President Vitor Constancio said on Wednesday.
Such increases should be carefully monitored as they can have a ripple effect on prices in the rest of the country, Constancio added.
The ECB warned earlier on Wednesday that prime commercial property prices had departed further from their long-term average and continue to see strong increases.
"Thus, a close monitoring of regional residential real estate price trends seems warranted, as they may provide an early indication of a potential build-up of vulnerabilities in housing markets at the national level," the ECB said.
(Reporting by Balazs Koranyi; Editing by Catherine Evans)