Global housing markets heat up

Low short-term interest rates and pent-up demand are reinvigorating global property markets, states the Scotiabank global real estate trends report, released today.

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“Inflation-adjusted home prices strengthened year-over-year in the second quarter in the majority of countries we survey,” said Adrienne Warren, Scotiabank senior economist.

Improvement in the first half of 2013 is most notable in a number of advanced nations including the U.S. and the U.K., and prices are rising faster again in some emerging markets, including China.

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Canadian housing activity remains buoyant, though the fundamentals for continued gains are becoming less favourable.

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Housing affordability at a national level is still historically average but it’s expected to become a bigger challenge for buyers over the coming year with interest rates now going up. Home prices also are staying strong.

“Potential overbuilding of condominiums in a number of major urban centres remains a concern, especially in light of recent evidence that demand is ebbing,” adds Warren.

Read more here.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.