Momentum is strong in the global housing market | Real Estate, 2021
37 of the world’s housing markets for which figures are available showed stronger upward momentum during 2020, while only 16 housing markets showed weaker momentum, according to Global Property Guide’s research.
In other words, it’s a great time to own real estate. Even during the pandemic, demand has been boosted by record-low interest rates, quantitative easing, and more bought outside cities in many developed countries that benefit from access to credit.
Real house prices (i.e., prices adjusted for inflation) rose in 40 out of the 53 world’s housing markets with so far published housing statistics, during the year 2020 to Q4. Home prices continued to accelerate in the U.S. and Canada, Europe, and the Asia-Pacific.
The North American housing market is booming. The U.S. FHFA house price index rose by 9.42% in 2020 (inflation-adjusted), the biggest y-o-y increase ever recorded. Likewise, in Canada, home prices in the country’s eleven major cities rose by 8.57% during 2020, contrasting to a fall of 0.29% the previous year. Strong home price surges have taken place in European countries, such as Slovak Republic (+14.28%), Turkey (+13.7%), Germany (+11.42%), Estonia (+10.37%), Sweden (+9.79%), and Russia (+9.14%), using inflation-adjusted figures.
Asia-Pacific is gaining momentum, with notable performances from New Zealand (+16.77%), Sri Lanka (+15.47%), South Korea (+8.51%), Taiwan (6.44%), Japan (6.05%) and China (6.01%).
Call to Action
Do you own any physical real estate? Do you own any REITs? Do you participate in real estate crowd-investing initiatives? it is good practice to monitor your real estate investment performance, taking into account global real estate trends. You can download the Global Residential Market Report (March 2021) here.
Property Real Estate is a great Asset Class to include and hold in your All-Weather Investment Portfolio. Until next time, Invest In Yourself and Sweat Your Assets.