Global housing market fares poorly in second quarter: report

TRD New York /
Sep.September 02, 2011 02:34 PM

alternate
text
source: Global Property Guide

The world’s housing markets were ostensibly weaker on balance during the year ending in the second quarter of 2011 than in previous years, according to the first-ever published residential market survey covering the second quarter by the Global Property Guide.

The Unites States and European housing markets fared particularly poorly, the report shows. U.S. home prices fell by over 9 percent since the second quarter of 2010 and home values were pushed down by foreclosures despite the lowest mortgage rates in half a century. The key factor driving U.S. foreclosures was the persistently high unemployment rate, the report says, which stood at 9.1 percent in the second quarter.

Few European housing markets improved; the worst-hit countries were Ireland, Greece and Spain, all of which performed worse than in 2010.

Globally, more housing markets experienced price falls than rises. Out of 26 countries with price falls, 18 saw accelerated rates of decline.

“House prices are still over-stretched in many countries, and developed world economies are still weak, so price-falls were to be expected,” said Matthew Montagu-Pollock, publisher of the Global Property Guide. “Low interest rates will be positive for housing, but only if the underlying economies recover. And recovery will ultimately bring a sting in the tail because higher inflation would eventually bring higher nominal interest rates, choking strong upward house price movements.” — Katherine Clarke


Related Articles

arrow_forward_ios
HFZ Capital’s condo the XI has sold 38 of its 236 units (iStock)

HFZ’s Chelsea condo now effective, with 16% of units sold

HFZ’s Chelsea condo now effective, with 16% of units sold
Zillow's Rich Barton (iStock)

Zillow launches brokerage to boost iBuying

Zillow launches brokerage to boost iBuying
421 Broome Street (Google Maps)

Soho penthouse buy sets record despite price chop

Soho penthouse buy sets record despite price chop
Oxford Property Group CEO Adam Mahfouda and (inset) the late Bianka Yankov (Mahfouda courtesy of Propco Holdings, iStock, Linkedin)

Oxford Property Group acquires Spire, expands to nearly 800 agents

Oxford Property Group acquires Spire, expands to nearly 800 agents
Brooklyn’s Sunset Park is in the midst of a severe housing crisis and in desperate need of affordable housing. (Photo by Jim.henderson via Wikipedia)

Sunset Park faces severe affordable housing shortage: report

Sunset Park faces severe affordable housing shortage: report
209 Dean Street and 315 Adelphi Street (Google Maps)

Sprawling Brooklyn townhouses drive week’s priciest deals

Sprawling Brooklyn townhouses drive week’s priciest deals
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...