“Home Prices Around the World Will Drop Soon, Economist Says. What to Expect”
July 6, 2022
“Home prices in nations such as Canada, Australia, and the U.S. are on the verge of a decline, Capital Economics’ chief economist writes. But not every country can expect price drops of the same magnitude.
Rising rates aren’t weighing on the housing market in just the U.S., according to a Tuesday note by Capital Economics chief economist Neil Shearing. Low interest rates drove an “extraordinary—and extraordinarily global” rise in home prices, the economist writes.
Now that rates are on the march again, “there are growing signs that this rise in borrowing costs—and the anticipation of further increases to come—is already fueling sharp downturns in housing markets across advanced economies,” Shearing writes…”