bravo festival condos prices.The global property market peaked one by one. As central banks around the world go further on the road to raising interest rates, lending rates are rising rapidly, demand for property is being curbed, and the property market is cooling rapidly, from Europe to Asia to Latin America.Please Visit: bravo festival condos prices to Get Your VVIP Registration Today!
One country that recently signalled a peak in the property market is the UK. The country’s asking prices are falling at their fastest pace in 21 years, affected by the off-season of the property market and the bleak economic outlook.
In addition, the United States on the other side of the Atlantic could be the next country where the housing market peaked. Goldman Sachs predicts that US house price growth is likely to be negative for the rest of the year as the Fed raises interest rates and pushes up mortgage rates.
Rightmove, the UK’s largest real estate website, said on Monday that the asking price of new homes for sale fell 1.3 per cent in August from a month earlier, slowing year-on-year growth from 9.3 per cent to 8.2 per cent. In terms of prices, high-priced houses fell the most, while by region, prices in London led the decline.
Rightmove says house prices usually fall in August as buyers go on vacation and focus on children going back to school.
In addition, other reports from the Bank of England and mortgage lenders show that rising interest rates and concerns about the cost-of-living crisis are starting to put pressure on the property market.
A number of indicators show that [real estate] market activity continues to cool from the highs of the past two years. The impact of interest rate hikes may gradually become apparent in the rest of the year. ”
But for now, a shortage of homes for sale and strong demand are likely to prevent prices from plummeting. Rightmove points out that demand from buyers has increased by 20 per cent since before the outbreak began in 2019.
With the exception of the UK, property markets in many countries have peaked in the process of raising interest rates by central banks.
Canadian house prices have fallen 13.3 per cent since April, faster than the financial crisis; Australian house prices fell 1.4 per cent in July from a month earlier, the sixth consecutive month of decline; and apartment prices in Seoul, South Korea, fell the most in more than two years, with turnover plummeting more than 70 per cent. New Zealand’s house price index fell 2.9 per cent in July from a year earlier, the first year-on-year decline since 2011.
The cooling of house prices in the United States has exceeded the financial crisis. Us house price growth slowed by two percentage points in June, the biggest one-month slowdown since records began in the early 1970s, according to Black Knight, a provider of mortgage software, data and analysis.
As the storm of Fed interest rate hikes continues to stir the market, the US housing market may not be able to hold up.
Last week, the Lotfi Karoui team, a strategist at Goldman Sachs, predicted in a report that US house prices would rise 9.4 per cent this year compared with the same period last year. But for the rest of the year, the increase in US house prices may be minimal or even negative.
“We keep our forecast of 9.4% for the whole of 2022 (house prices rise). Annual house price appreciation (HPA) reached 22 per cent in April, which means that the annual HPA from May to the end of the year is 1.4 per cent. ”
“more importantly, it also takes into account the possibility of a small month-on-month decline in house prices in the second half of this year.”
By 2023, house price growth will continue to slow sharply. Strategists expect US house prices to rise by just 1.4 per cent in 2023. By contrast, American house prices rose 18.8% in 2021, according to the case-Schiller house price index.
Goldman Sachs said the main reason for the forecast was that the Fed raised interest rates and pushed up mortgage rates, squeezing housing demand.
In the last week of July, the average sales time of mid-priced homes in the United States was one day longer than in the same period last year, according to data released by Realtor.com, a US real estate website. Although there is only one more day, it is the first time that the weekly index has risen since June 2020.
Among them, in Austin, Texas, Denver, Colorado, and San Bernardino and Riverside, California, home sales in July exceeded the same period last year.