FRANKFURT—The eurozone housing market is heating up, increasing the chances of a correction in both the residential and commercial segments, the European Central Bank said in a stability report on Wednesday. With families building up savings during pandemic and increasingly working from home, demand for property is on the rise, pushing house price growth to over 7 percent, its fastest rate since 2005. “Risks of price corrections over the medium term have increased substantially amid rising estimates of house price overvaluations,” the ECB said in a biannual stability report. Construction cannot keep up with demand and the residential market is especially hot in countries such as Germany, France, and the Netherlands. “Despite the recovery in residential construction, labor shortages, global supply chain bottlenecks, and input price increases are weighing on the construction sector’s ability to expand housing supply, which is putting upward pressure on house prices,” the ECB said. While …