Jan. 20, 2010

Global Property Market Recovering

The world housing market is continuing in its recovery, the newest Global Real Estate Trends report by Scotia Economics claims. Canadian market is in a good condition and in couple of other states, signs of recovery of the real estate market are visible too.

In 2009, the approximate number of MLS home sales 465,000 - increase of seven percent from a year before. The number of new homes last year, however, decreased from 2008. It was approximately 146,000 in 2009 and 211,000 in 2008. There was an increase in home prices, though - up to $315,000 over the year.

Canada is actually the leader in the property price increases. In the third quarter of 2009, average home prices rose by 11 percent. "Canada still leads the pack among the markets we track. " Adrienne Warren, Senior Economist of Scotia Economics said. "Inflation-adjusted average home prices in the July to September period were up 11 percent from the same quarter a year ago, a dramatic turnaround from the 10 percent yearly decline recorded in the opening months of 2009. " Warren further noted. There is no need to be worried about the rising prices in the country, according to Scotia Economics, though. As they claim, prices in the country rose mainly due to basic demand-supply factors and they should stabilize in the near future.

In Australia, the average home prices are in positive territory again, as they increased by 5 percent from third quarter of 2008 to third quarter of 2009. However, in the US, average home prices decreased by 6 percent in the third quarter of 2009 from the same period in 2008. That still is a pretty good result, if we consider that there was a fourteen percent decline in first quarter of 2009 from the year before. In European countries it's diverse: the situation in the UK is almost like the situation in the US. And in France we can see stabilizing of prices. "A shortage of homes for sale, alongside strengthening housing demand, is contributing to the firming in prices in a number of countries, including Canada, Australia and the UK." said Warren.

Good, good. Expected, too, after all the recent positive news about economic recovery. Great to hear once again that Canada belongs to countries doing just fine. If we compare our results with those of the US, we are pretty good. And frankly, I do feel quite proud.

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