Prices are still rising as the global housing market index defies market forces.

In Q2, 2022, Turkey experienced the highest annual price growth worldwide.

International real estate advisor Knight Frank claims that in Q2 2022, housing markets around the world defied the odds. While many anticipated a noticeable slowdown in the index’s overall performance as well as the number of nations experiencing annual declines in house prices in the second quarter of 2022. Neither appeared.

Despite a slight decline from the previous quarter’s 10.9%, Knight Frank’s Q2, 2022 Global Housing Index is still rising at a rate of 10% annually. In addition, despite the clouds, or rather storms, on the economic horizon, 51 of the 56 countries and territories tracked continue to record an annual increase in house prices.

Despite the clouds or rather storms, on the economic horizon, 51 of the 56 countries and territories tracked continue to record an annual increase in house prices.

Even so, only 49 of the 56 markets remain when Knight Frank examines data from the previous three months.

Markets are experiencing pressure, as some might anticipate in practical terms. Real house price growth in the year to Q2 2022 is only 1.6% on average when inflation is taken into account, down from 6.2% a year earlier.

Asia Pacific

There are indications that Asia Pacific is in the lead when it comes to the slowdown, despite the fact that the global picture in nominal terms is one of relative resilience. Six markets—Hong Kong, South Korea, the Chinese mainland, Australia, Malaysia, and New Zealand—out of the seven that experienced price declines between March and June 2022 are located in the Asia Pacific region.

The largest drop in prices was in New Zealand, where prices fell 3% over a three-month period. Buyer sentiment has changed from a fear of missing out to a fear of overpaying as a result of new responsible lending laws, seven rate increases since October 2021, and other factors.

Despite the close proximity of the Ukraine crisis, Central and Eastern European countries continue to perform well. This quarters top ten includes Slovakia (26%), the Czech Republic (24%), Estonia (21%), Hungary (20%), Latvia (17%), and Slovenia (17%).

Elsewhere

With inflation at a 24-year high of almost 80% and interest rates moving lower, Turkey’s triple-digit annual growth of 161% can largely be disregarded.

Despite its sixth-place ranking and 21% annual growth, the US housing market is robust, but a slowdown is anticipated. Existing home sales decreased again in July as a result of higher mortgage rates; they are now down 26% from their peak in January 2022.

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