Global housing market slump ‘to continue’
London, September 1, 2012
No end to the global housing market downturn is in sight, except probably in the US, according to a survey of global house price trends by the Global Property Guide.
Asia is weakening, and house price falls in the worst-hit European crisis countries are dramatically accelerating, according to the report.
The Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index in the US rose 1.12 per cent year-on-year in Q2 2012, in sharp contrast with the 8.76 per cent decline during the same period last year. On the other hand, the S&P/Case-Shiller seasonally-adjusted home price index fell by 0.74 per cent, but this was the lowest annual decline since the third quarter of 2010.
“Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter,” said Andrew Leventis of FHFA.
“The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase.”
According to the survey, Europe is sinking deeper. There were alarming price-falls year-on-year in Q2 2012 in Ireland, Spain, Greece, Portugal and the Netherlands (each down more than 10 per cent after inflation). Poland and Cyprus seem also to be slipping into the abyss.
In the worst-affected European countries, house price declines were significantly greater this year, than during the same period last year. House prices fell in 15 of the 22 European countries for which house price data is available.
Twenty housing markets performed more poorly year-on-year in Q2 2012 than in the same period last year, while 19 countries performed better, again in inflation-adjusted terms.
Of the 39 countries for which quarterly house price figures are available, house prices fell in 25 countries, rose in only 13, while one country (the US) posted mixed signals during the year ending in the second quarter of 2012. – TradeArabia News Service