According to Business Insider, Canada has been ranked as one of the top real estate markets in the world. The Insider’s charts included 14 different line charts, showing what home prices were doing in 14 different countries to collect the results. The timeframe used was the same for each, comparing stats from 2011 to those of 2012. We’ve compiled all of that information into one easy to understand chart as follows:
From this chart, you can easily see that:
- Home prices in Hong Kong went up 3.01%
- Home prices in Canada were up 4.06%
- Switzerland saw an increase of 4.86%
- Germany’s home prices were up 5.24%
- New Delhi saw increases of 6.23%
- Norway saw a jump of 6.26% in prices
- Sao Paulo, Brazil was the clear winner with a 15.56% jump in prices
So while Canada may not be leading the charge, we’re definitely in the mix of winners when it comes to our housing market; a sign that we’re doing well. Even despite the fact that we may be taking on a lot of debt; and that economists say our market’s going to cool in the next several years. But not nearly as well as Sao Paulo, Brzil. So, what’s their secret, and why is the market doing so well over there?
Because of their economy, and the global hot spot that Brazil is about to become. Just like in Canada, Brazil’s housing market is doing exceptionally well right now due to their low interest rates. And while, at 8 per cent, they may not be as attractive as they are in Canada right now, you must consider that rate’s been brought down from the 12.5 per cent where it sat last year – opening the market up to many more people. Also, with the Soccer World Cup coming in 2014; and the Olympics two years after in 2016, Brazil’s one area that’s going up, up, up in value.
Of course, along with the good there’s also the bad and it’s no different when it comes to housing markets. From the chart above you can also see that Cyprus, Poland, the Netherlands, Portugal, Greece, and Spain all saw decreases and losses over the past year. And Ireland saw a whopping decrease of over 16% in their home prices. Given that most of these (with the exception of Cyprus in the Middle East) are in Europe, that’s not surprising; as this area is still struggling with recession. In Europe in fact, housing prices declined more and at a faster pace than they did even last year.
The Global Property Guide, who was the first to put this information together, used price changes after inflation, which gives a more realistic picture than the nominal house prices that are so often used to paint a rosier picture. When nominal house prices are used, it looks as though prices rose in 21 countries and dropped in 18. But using real data adjusted for inflation, this information shows that house prices actually only rose in 13 countries; and that they fell in 25.
What do you think about the Canadian housing market? Do you think we’ll sit at the top of the pack for awhile? Or is this just the calm before the storm? Leave a comment below or Like us on Facebook and keep up with all of today’s financial news!
