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End of Global Housing Boom
Excerpted from National Association of Realtors®.
A recent survey of home price indicators suggests that the worldwide housing boom is over according to the Global Property Guide.
Of 34 countries in which home price indices are regularly published, 21 saw home prices fall after adjusting for inflation over the past year (ending first-quarter 1Q 2008).
In the majority of markets where house prices did not fall, they are losing momentum. Latvia saw the biggest price drop--down 38.2%. The global credit crunch and inflation due to rising prices of oil, food and commodity prices are seen as the primary causes. The drop in U.S. prices range from -4.2% to -18.1%, after inflation, depending on which index is used, and Europe saw the most significant drops in Ireland (- 13.2%), Luxembourg (-5.8%), Portugal (-4.3%) and Malta (-4.9%).
Emerging markets are the source of good news in terms of price growth, with Slovakia topping the list where, after adjusting for inflation, house prices rose 29.3%. Other markets with home prices increases during the past year include China (Shanghai), Bulgaria, Hong Kong, and Singapore. |
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