In a year which has turned the world upside down, one could be forgiven for assuming that housing markets across the globe would be expected to take a downturn. However, according to the Global Residential Markets report undertaken by CDN, despite the pandemic, real house prices rose in 43 of the world’s 55 housing markets. With substantial house price rises in both Europe and the U.S., transaction volumes are also surging.
We take a look at some of the results, and what this may mean for investors.
Turkey has again kept its place as the most robust housing market in the survey, with the nationwide house price index rising by a record-breaking 13.96% up to Q3 2020 – up from the previous year’s 2.19% year on year fall.
It was the third consecutive quarter of y-o-y growth in real house prices since Q1 2017. Every quarter, real house prices rose 2.66% in Q3 2020.
Turkey remains extremely attractive to overseas investors thanks to the currency devaluation, which provides ample opportunity to invest at incredibly desirable prices.
Five of the strongest housing markets on the survey are in Europe, with house prices rising in countries, including the U.K., which has a 2.4% year on year growth. Other strong European housing markets including Vienna where house prices rose 7.68% during the year to quarter 3, Portugal (5.96%), Estonia(4.71%) and Russia(5.86%).
Thailand retains a healthy housing market, despite the economy suffering due to the effects of the pandemic.
House prices rose by a healthy 5.01% during the year to Q3 2020, an improvement from the previous year’s 3.32% increase. It was the thirteenth consecutive quarter of y-o-y price increases.
Thailand remains a destination of choice for a wide range of investors wishing to take advantage of the low entry levels and stunning location.
The U.S. continues to see a price boom, with the S&P/Case-Shiller seasonally adjusted national home price index rising by 5.51% during the year to Q3 2020 (inflation-adjusted), a significant improvement from the previous year’s 1.46% growth.
Real house prices increased by 2.19% during Q3.
Additionally, the outlook from those in the industry is improving with U.S. homebuilder sentiment soaring to a record high of 90 in November 2020 – a considerable increase from 71 in November 2019.
U.S. homebuilder sentiment soared to a record high of 90 in November 2020, sharply up from 85 in October 2020 and 71 in November 2019.
The IMF revised recently upwards its 2020 economic forecast for the U.S. to a contraction of 4.3%, up from its earlier projection of an 8% decline. Unemployment fell to 6.9% in October 2020, down from a record high of 14.7% in April 2020. However, it remains far above the previous year’s 3.6% jobless rate.
While we don’t know what 2021 will bring, it certainly appears that, despite the Covid crisis, property remains a strong, secure investment for buyers across the globe.