House prices are expected to fall in major markets this year, according to a Reuters poll.
Home
prices are dropping in many of the countries and regions that saw the
biggest rise in prices during the 2020-2022 global housing boom.
- Home
prices in the U.S., Canada, the U.K., Germany, Australia, and New
Zealand surged as much as 50% in some markets since the start of the
Covid pandemic in early 2020.
- The rise in interest rates has
caused mortgage rates to jump dramatically over the past year, putting
more pressure on borrowers and weakening demand for homes.
- This has coincided with a major increase in rental costs in many markets.
- Most of the property analysts (50 of 96) polled believed that rental affordability will worsen next year.
- According to the poll, home prices in Canada and New Zealand are forecast to experience a peak-to-trough drop of at least 20%.
- Peak-to-trough drops of 10% or more are expected in Australia, Germany, and the U.S.
