Research of the quarterly property market indices from 36 countries indicates that the property price downturn is now accelerating across the globe.
The quarterly data analysed by The Global Property Guide shows that house prices fell in 24 of the 36 countries in the year to the first quarter of 2012 and rose in only 12 of them.
But now in the first quarter alone the number of countries showing house price falls over the period has increased to 26 out of the 36.
The Global Property Guide (www.globalpropertyguide.com) uses prices adjusted for inflation. When nominal prices are used then only 20 countries out of the 36 show house price falls. Nominal figures are more likely to be used by those with a vested interest in property prices rising.
Of particular note are the ‘catastrophic’ falls in Ireland, where house prices have shown an inflation adjusted drop of 18.95% year on year to Q1/2012 on top of a 13.12% fall last year but now prices have dropped over 5% in the first quarter of 2012 alone.
There were also ‘alarming’ falls in the European countries of Greece, Poland, Portugal, Spain, the Netherlands, and the Slovak Republic.
Whereas other European countries such as Finland, Turkey, Sweden and Latvia that had previously seen price stability or only a small downturn are now experiencing a deterioration of house prices.
The stronger housing markets were in Estonia, Austria, Switzerland, Norway, Russia and Iceland (who’d have believed that a couple of years ago?)
House prices in Delhi rose a staggering 24.41% year on year with Sao Paolo next with 18.7%.
The Global Property Guide says that most Asian housing markets are slowing when inflation is taken into account.
The message from this is that a house which is worth Â£150,000 this year and Â£150,000 next year is devaluing in real terms due to inflation. Simply put that is because Â£150,000 next year will buy you less food than it will this year.
Note: Ukraine is missing from the above list, so only 35 countries are shown. Ukraine showed nominal falls ofÂ 2.51% year on year to Q1/2012 and 7.14% in the first quarter alone. When taking inflation into account this will be greater.