Global real estate markets are showing tentative signs of growth in stabilizing according to the Global Real Estate Trends report, released on October 1st by Scotia Economics.
Scotia Economics believe that the improving sentiment in global residential real estate markets is sustainable. According to the report, the firming of prices is evidence of growing confidence in sustainability of global economic recovery.
With historically low borrowing costs, increased affordability and home buyer tax incentives in many countries, there is a good revival in housing demand.
With the recovering real estate markets, the International Monetary Fund has also releases a report showing there will be 3.1% growth in 2010 instead of the earlier forecast of 2.5%
Scotiabank does warn that recovery will be weak.
Countries remain burdened with an excess supply of unsold homes after year of it building up.
In Canada we see prices have appreciated 66% from 1999 to 2007, with prices dropping only 8% since then.
The report continues to say that Scotiabank expects that resale markets will become better balanced in 2010 as listings pent-up demand decreases. Price appreciation should also cool down, stabilizing itself after the months of increase.
The new home market is suffering from inventory problems, with many unsold homes. The oversupply still remains to be seen in the condominium sector.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
