If you’re looking to purchase property overseas it may be time to make a move if the latest property reports are to be believed.
Property markets around the world may finally be recovering according to the latest Standard & Poor / Case Shiller index of house prices. The Standard & Poor / Case Shiller index tracks and measures values in the residential real estate market in 20 different regions across the United States of America. The results of their analysis are used to measure the housing market of the USA as a whole. Results are calculated monthly and published with a two month lag. The latest index levels are published on the last Tuesday of every month.
The latest findings reveal that house prices across 20 major cities in the US rose by 5% between April and May this year. The upturn, which has occurred for the first time since 2006, is believed to indicate that the downward spiral in the housing markets may finally be coming to an end. Analysts all over the world are now hoping that the upturn may be indicative of the start of economic recovery in the US. Mark Zandi, the chief economist at Mood's Economy. com seems to think so. In a recent Voice of America news article he asserted that he condition of the housing market would certainly impact the economy as a whole, "I think it's a necessary condition. I don't think the financial system stabilizes nor does the economy gain traction unless the housing downturn comes to an end. And I think it is coming to an end," he said.
Commenting on the findings, a Standard & Poor analyst David Blitzer commented, “This is the first time we have seen broad increases in home prices in 34 months. This could be an indication that home price declines are finally stabilizing”.
The Standard & Poor research findings are enforced by data from the National Association of Realtors, which also shows a recovery in house prices. Their findings reveal that the median price of house sales in the US showed an increase of $144,700 between the months of May and June this year.
It appears that recovery isn’t just limited to the United States and elsewhere around the world similar trends are being observed. The National Development and Reform Commission in China reported a rise of 1% in property prices in 70 cities over the past year. Similarly, Britain has also observed an increase of 1.1%.
However, it isn’t good news at all expat destinations with countries such as Spain and Ireland continuing to see major decreases in house prices. Dubai, a country where 80% of the population consists of expats, has seen property prices fall by almost 50% over the past year and EFG-Hermes have predicted that a recovery in Dubai’s real estate market will not happen until 2011 at the earliest.
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