Global real estate prices are falling, especially in more advanced economies. Bank of International Settlements (BIS) data shows real home price growth was negative for most markets in Q2 2023. The same advanced economies that saw the largest growth post rate cuts, are now leading the way lower. They also appear to be struggling with recovery, which has proven less of a challenge for emerging market economies.
Most Economies Are Seeing Home Prices Fall
Most of the world has seen real residential real estate values drop, but advanced economies saw a bigger impact. About 80% of advanced economies saw year-over-year price drops in Q2. In contrast, 60% of emerging market economies saw negative price growth.
Source: BIS.
Advanced economies are also seeing deeper price drops and they tend to be stickier. The aggregate of advanced economies showed y/y growth of 4.7% in Q2, more than 9x the decline observed in emerging markets. Emerging markets have also bounced back towards growth (but not quite) a lot faster since hitting their trough.
The above chart may also indicate this trend is in response to the size of home price growth post-2020 rate cuts. The peak of y/y price growth is significantly higher than that seen in emerging markets. They also happen to be significantly greater than any historical peak, surpassing the trend seen before the global financial crisis.
Home Prices Are Falling Sharply In G20 Countries
So where have the biggest hits to home prices been observed? Isolating the G20, the BIS research shows Hungary (-15.6%) saw the biggest annual drop. It was followed by Germany (-15.5%), and Sweden (-15.2%).
Source: BIS.
The drop for real home prices in Canada managed to rank amongst the largest observed. However, with an annual decline of 11.7% in Q2, it was more tame in contrast.
Not all G20 countries have seen prices fall though. Massive annual growth was observed in Turkey (+39.5%), which is leading on the way up. It was followed by the UAE (+12.9%), and Greece (+11.2%) which also managed double-digit real growth despite inflation issues.
Global real estate prices have generally boomed since pandemic-related rate cuts. A previous report from the BIS attributed this boom to central banks holding rates too low for too long, also contributing to the general inflation crisis. Now that rates have increased to balance inflation, home prices in most economies are rolling back. They still have a long way to go before balancing out the recent exuberance though.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
