The World’s Housing Markets Were On Balance Weaker During The Year Ending In The 2nd Quarter Of 2011, According To The First-Ever Broadcast Survey Covering The Q2 2011 Info.
By w2may | September 17th, 2011The world’s housing markets were on balance weaker during the year ending in the 2nd quarter of 2011, according to the first-ever released survey covering the Q2 2011 info, released today by the World Property Guide, which historically publishes worldwide housing data before other research homes.
Few European countries ‘ markets rose, most dropped, and many worse-hit countries like Eire, Greece and Spain performed even worse this year than last year. The US figures were also disappointing, due to high unemployment.
Globally, more housing markets experienced price falls than rises.
Only thirteen out of 39 countries which have so far released data for the period saw house price increases during the year to end Second-quarter 2011.
Out of twenty-six countries with house price falls, eighteen saw accelerated rates of decline.
The Worldwide Property Guide’s statistics presentation uses price changes after inflation, giving a pragmatic picture than the more optimistic nominal figures usually favored by real-estate agents.
Hong Kong had the biggest increase among all countries surveyed by the Worldwide Property Guide, in spite of cooling measures implemented by the government. House prices were up 19.76% over the year to finish Q2 2011, after inflation, with a quarterly rise of 3.51%.
The base dynamic has been Hong Kong’s extraordinarily strong industrial expansion, with GDP up 5.1% over twelve months earlier, and really low rates caused by the HK dollar’s peg to the US dollar.
In Thailand, single-detached houses rose impressively by 7.75% during the year to Second-quarter 2011, after inflation, after last year’s fall of 4.83%.
Thai house prices zoomed by 18.29% during Q2. This rise probably resulted from the nil interest loan scheme launched by the Governing body Housing Bank (GHB), directed at increasing home ownership among lower and middle class earners. Nevertheless it should be noted that the Thai house price database is dated and unrepresentative.
Western european housing markets have been puny
Prices of houses in Europe sometimes slid lower during the year to the second quarter of 2011. Actually most European countries experienced quicker rates of decline than last year.
The data can be grouped into a few categories : a) quicker declines this year than last, b) recoveries last year which have turned into declines, c) continued declines, but not as severe as last year, and d) actual recoveries (a tiny category).
A few European countries which saw house price falls last year performed much worse this year
Eire had the worst house price decline among all reporting countries in our survey over the twelve months to Q2 2011. House prices were down by 14.84% annual, a far worse decline than the 11.83% fall the previous year.
European countries which experienced weaker performances than the year before include Netherlands (-4.07%), Slovak Republic (-6.49%), Croatia real estate (-6.55%), Spain (-8.43%) and Athens, Greece (-9.88%) (all figures inflation-adjusted).
Some Western european countries which recovered last year, sunk back this year
In Latvia, standard type residences in Riga slid by 5.40% yearly, after a solid comeback since Second-quarter 2010. Quarter-on-quarter, house costs were down by 3.80%.
In the United Kingdom, average house prices were down by 5.33% annual, after rising 6.04% the previous year. The home market commenced bouncing back as early as Q4 2009, but started falling again in the last quarter of 2010. The price-falls in the United Kingdom are interesting, because UK IRs have been low and sterling has fallen, enticing foreign customers.
In Sweden, house prices slipped by 1.35% over the year to end Q2 2011, likely due to the 85% mortgage ceiling introduced last year.
In Portugal, house prices have been falling since Q3 2010, and during the year to Second-quarter 2011, prices dropped by 5.67%.
In Germany, house costs have been slowing since the first quarter of 2011. In the complete year to Q2 2011, costs dipped by 0.65%.
In Finland, house prices rose, but were up an insignificant 0.18% yearly, down from 10.24% expansion over the same period last year.
1 or 2 EU countries have seen their housing markets recover
Norway led the little group of EU countries which experienced house price increases, up by 5.93% over the year to finish Second-quarter 2011. Norway’s housing market began to rebound in Q3 2009 and has not slowed, driven by low rates and powerful commercial expansion (4.80% over a year earlier).
Housing markets in Estonia (Tallinn), France and Iceland rose during the year to end Q2 2011 after suffering house price falls in the previous year. In Tallinn, house prices were up 4.94% year-on-year, after last year’s fall of 0.66%. In France (information is from FNAIM), costs of existing dwellings rose 4.65% year-on-year, after a fall of 1.71% the previous year. In Iceland, house prices rose a touch by 0.60% year-on-year, after falling by 9.04% during the year before.
After a decade-long decline during the 1990s, the home market in Switzerland has been stable since 2000. In the year to Q2 2011, residence costs rose by 2.19% annual, up from 0.92% the previous year.
Israeli home market softening
Israel house prices were up 5.40% yearly to Q2 2011, but the pace is slowing due to the steps taken by Bank of Israel. These include rate walks (now 3.25%) and the new limit on prime interest based mortgages (33% of the property’s worth).
During Q2, Israeli house prices slipped by 3.38%, the steepest decline since the last quarter of 2008. Furthermore, the continuing increase in the amount of building starts, and steps taken by the Ministry of Finance in real estate taxation, are expected to be reflected in house prices in the course of the coming year,writes tagza.com.
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