Economy Impacts Global Housing Market
Home values across the globe rose at a slower pace than usual in the second quarter of 2019. In fact, they rose at a slower pace than any point in the last decade with an appreciation rate of just 3.4% across 56 countries. This slow growth is a reflection of buyer fears of an impending global economic slowdown.
Leading the index in home value was China at 10.9% which was low compared to previous performance of this top-performing market. China was closely trailed by Malta at 10.8% and the Czech Republic at 9.4%. This is the slowest annual growth for the world’s top market performers since the last global recession in the first quarter of 2009.
While a handful of countries inched towards double-digit growth, the majority saw a growth in value of 5% or less amidst a shift in economic conditions. Trade wars, political protests, and a weakening economic sentiment have all contributed to buyer apprehension and lack of confidence in the global market. In places such as the U.K. where Brexit is leading communications home prices were only up .9% due to the economic and political uncertainty.
The only countries included in the report to have experienced negative growth is Australia, Finland, Italy, and Morocco.