![]() Higher mortgage rates led to another fall in existing home sales in July, which are now down by 26% from their peak in January. The US housing market is resilient in sixth place with 21% annual growth, but a slowdown is on the cards. Turkey’s triple-digit annual growth of 161% can largely be ignored with inflation at a 24-year high of almost 80% and with interest rates heading south this figure may yet increase. The bank looked at 25 cities and found that nine could face housing bubbles. Slovakia (26%), Czech Republic (24%), Estonia (21%), Hungary (20%), Latvia (17%) and Slovenia (17%) all sit within the top ten this quarter. Toronto, Frankfurt, Hong Kong and Munich are among the world cities at the highest risk of facing a housing price bubble, according to investment bank UBS. European property performingĮurope Central and Eastern European countries are still performing strongly in relation to global house prices, despite the proximity of the Ukraine crisis. New responsible lending laws and seven rate rises since October 2021 have shifted buyer sentiment, from a fear of missing out to a fear of overpaying. New Zealand has seen the biggest decline amongst global house prices, with prices down 3% on a 3-month basis. Of the seven markets that saw prices decline between March and June 2022, six are in the Asia Pacific region: Hong Kong, South Korea, Chinese mainland, Australia, Malaysia and New Zealand. When taking inflation into account, house prices in real terms are averaging just 1.6% growth in the year to Q2 2022, down from 6.2% a year earlier.Īsia Pacific, although the global picture in nominal terms is one of relative resilience, there are signs Asia Pacific is ahead of the curve when it comes to the slowdown. Perhaps we’re premature with our doom mongering and the inflection point will be next quarter.Īs you would expect in real terms markets are feeling the pinch. Plus, 51 of the 56 countries and territories tracked continue to register an increase in house prices on an annual basis despite the clouds, or rather storms, on the economic horizon.Įven when we look at the data over the last three months that figure only drops to 49 of the 56 markets. The overall index is still rising at 10% per annum, down only marginally from 10.9% last quarter. On the other, the HPI incorporates VAT in the price of the new home and the IPV does not include it.Categories: Property Sector Residential Sales Research service Sales World Regions Global The IPV and the HPI differ in two technical aspects: on the one hand, the reference period of the weights is the year prior to the current one, in the case of the HPI, while the IPV uses the two previous years for its calculation. The IPV design and development process has been carried out simultaneously with that of the HPI, harmonized housing indicator of the European Union, coordinated by the Statistical Office of the European Union (Eurostat). The sample used for this statistic includes all the houses registered in the reference quarter. But it’s not a global boom 22 cities are still seeing prices decline year-on-year with several key cities in. Cities are far from underperforming their national housing markets, both look to be moving in tandem as we reported in our Global House Price index last month. The source of information used comes from the databases on deeded homes provided by the General Council of Notaries, from which the transaction prices of the homes are obtained, as well as the weights assigned to each set of homes with common characteristics. cities we track, 43 are now registering annual price growth above 10. The Housing price index (IPV) aims to measure the evolution of the sale prices of free-priced homes, both new and second-hand, over time.
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