ANALYSIS-Safe as houses? Rising rates test foundations of property boom

A decade-long boom in housing prices from the United States to Europe and Asia is facing its first real test as borrowing costs rise and high inflation eats into households' budgets.

In Toronto’s far-flung suburbs, just a few months ago a typical three-bedroom house would have fetched 40 offers on bidding night and sold well over the asking price. Now, home-buyers have become hard to find.

"You're not getting the bidding wars anymore," said Tim Keung, chief executive of TimSold Real Estate, a local agency.