As a member of Leading Real Estate Companies of the World, we are privy to global economic insights from LeadingRE’s Chief Economist, Marci Rossell, who takes complex economic issues and makes them relevant to buying and selling real estate. In this edition, we are covering the Global Market Prices.
Global property prices increased 4.6% in 2017 with growth all over the world and price appreciation in a majority of property markets.
FACTORS BEHIND GLOBAL PRICE APPRECIATION
• Synchronized growth occurred in markets from the U.S. to Japan, across all of Asia, through most of Africa and the Middle East, and into Europe.
• Effects of easing monetary policy from the European Central Bank boosted economies throughout the Eurozone.
• Global oil prices settled between USD $50 and USD $60 per barrel. Economies depending heavily on oil prices for their wealth generated income in 2017.
Despite global growth and price appreciation in 2017, there may be a threat on the horizon.
FACTORS BEHIND A RETREAT FROM GLOBALIZATION
• We are seeing the possibility of tariffs being imposed in the U.S. economy.
• Restrictions are being imposed in international property markets due to an affordable housing crisis. For example, New Zealand passed a law in late-2017 that bans most foreign buyers from their property markets.
Property buying restrictions are not the long-term answer. Supply restrictions and efforts to ease those restrictions are a much more effective way of dealing with property supply issues in every market throughout the world.
For more information on the real estate market contact one of our real estate professionals.