Turkey enjoyed the world’s highest annual price growth in Q2, 2022
According to global real estate consultant Knight Frank, the global housing market showed volatility in the second quarter of 2022. Although many expected a dramatic decline in the second quarter of 2022, both in terms of the index and the return on the index the number of countries following it house prices fall every year Or change.
Knight Frank’s global housing index for the second quarter of 2022 is still at 10% y-o-y, down slightly from the previous quarter’s 10.9%. In addition, 55 of the 56 countries and territories tracked continue to see year-over-year increases in home prices, despite recessionary years or storms.
Of the 56 states and territories tracked, 51 continue to see year-over-year increases in home prices, regardless of economic years or storms.
Even when Knight Frank looked at data for the past three months, that number drops to just 49 out of 56 markets.
As some expect in reality, the market is feeling the pinch. Adjusted for inflation, house prices are forecast to rise by just 1.6% in real terms through the second quarter of 2022, compared to 6.2% last year.
While the global picture in the headlines shows resilience, there are signs that the Asia Pacific region is ahead of the recession curve. Of the seven markets where prices fell between March and June 2022, six are in the Asia Pacific: Hong Kong, South Korea, mainland China, Australia, Malaysia, and New Zealand.
New Zealand had the biggest drop, with prices down 3% in three months. New rules on responsible lending and seven interest rates from October 2021 have shifted consumer sentiment from fear of default to fear of overpaying.
Despite the proximity of the Ukraine crisis, the countries of Central and Eastern Europe are still acting vigorously. This quarter’s top ten countries include Slovakia (26%), the Czech Republic (24%), Estonia (21%), Hungary (20%), Latvia (17%), and Slovenia (17%).
Turkey’s three-quarter annual growth of 161% may be largely offset by inflation at 24-year highs of 80%, and if interest rates head south, that figure could rise.
The US housing market is steady in sixth place with 21% annual growth, but a slowdown is on the cards. Rising mortgage rates led to another decline in home sales in July, which are now down 26% from their January 2022 peak.