World on the Mend

While housing markets in the world’s leading economies remain distressed, hope is on the horizon. According to globalpropertyguide.com of the 27 countries which have already published their Q3 data, 16 countries have experienced rising prices and falls in only 11 countries. Economies such as the UK, Canada, Germany, Singapore, and South Africa are finally noting positive price changes quarter-on-quarter after being negatively affected during the economic slump. Of this group, the rising prices in the UK, Canada, Germany, and South Africa are the first after suffering declines every quarter since 2008. While some markets’ increases are more modest than others, the over-arching trend is toward recovery. More information on specific housing markets is available at globalpropertyguide.com.

A New No. 1?

The long-standing real estate top performer is on the brink of losing its status. As one of the first countries to raise interest rates since the global recession began, Israel has the market concerned that the higher rates will discourage borrowers and lead to a drop in property purchases. The rate currently stands at 0.75%, and will likely increase in an effort to fight inflation. According to propertywire.com some economists are predicting that interest rates will go up to 2.5%. This could mean a decline in property prices, but are more likely to stabilize than plummet.

Foreign Buyers Taking Advantage of Slashed Prices

If you haven't been looking outside the U.S. for potential buyers, it might be time to start. International investors bought 154,000 homes and condos in the 12-month period ending in May, and are continuing to take advantage of the weak dollar. The U.S. dollar has dropped 9 to 11 percent since June against foreign currencies like the Japanese yen, the European euro and the Canadian dollar. Another attractive feature is that, while the U.S. dollar has weakened significantly, the economy is showing signs of stabilizing along with the housing market. A plus for REALTORS®? Nearly 46% of international home buyers paid cash for homes purchased, and the median price foreign buyers paid for a home was nearly $80,000 greater than the U.S. national median price. According to msnbc.com buyers from Brazil, Canada, France, and the Netherlands have paid mostly cash for second homes ranging from $6 million to $15 million in condo buildings.