Categorized | Investing

Global Economic Woes Impacting Real Estate Markets Worldwide

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Real estate markets around the world are feeling the effects of the uncertainty that continues to plague the global economy. Over the last three months, there has been zero growth on a global scale when analyzing real estate sales and pricing worldwide.

The current performance is the worst it has been in two years, and many fear that the pending threats of debt crises around the world may contribute to further decline in the coming months. With a double dip recession looking more likely in many parts of the world, analysts have strong reason to believe that such a decline could be imminent. As such, some investors are opting not to put money into the real estate market for the time being.

Governmental actions taken to control prices in China and other Asian nations have also contributed to the worldwide decline, and have actually allowed Western nations to catch up a bit in terms of home values and sales performance. Some of the European nations that have struggled the most in recent years have finally seen their housing market’s freefall slow down, which has helped boost the numbers of Western nations as a whole.

Hong Kong has, by far, the strongest housing market worldwide, as the nation posted nearly a twenty percent increase in home pricing and values in the last three months alone.

Luxury homes have been the best performing sector of the real estate market, as they have avoided the difficulties faced by the real estate market on average. Analysts attribute the growing separation between luxury and mainstream markets to the widening gap between the rich and middle class in many industrialized nations.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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