The hottest national housing market in the world is in your backyard.
Canada has topped a list that compares home-price growth over the past year between 23 national markets, according to Scotiabank’s Global Real Estate Trends report published this week.
“Canada, Australia, Sweden and the U.K. remain among the top performing residential markets internationally,” writes Adrienne Warren, a senior economist at Scotiabank, in the six-page report.
By the numbers—Canadian home prices in the first quarter of this year were up 14.7 per cent compared to that time in 2015. Canada was head and shoulders above the other markets, with the exception of Sweden.
The Nordic nation trailed closely with prices soaring 14.1 per cent in the fourth quarter of 2015, the most recent numbers available to Scotiabank, from the same period in 2014. The next-closest market was actually Colombia, where prices in the fourth quarter of last year surged 8.1 per cent year-over-year.
The performance of these hot markets falls in line with a broader global trend, the economist explains. Citing International Monetary Fund estimates, Warren says about three-quarters of national markets are seeing home prices rise, going off the most recent data available.
“Momentum in general favours advanced nations over emerging markets, though gains can be seen across regions,” writes Warren.
This doesn’t ring true for all national markets, however. Prices plunged 16 per cent in Brazil and nosedived 14.4 per cent in Russia, according to Scotiabank.
“Notable exceptions are Brazil and Russia, where deep recessions, rising unemployment and high interest rates continue to put significant downward pressure on housing demand and prices,” Warren explains.
With the white-hot performances of several markets, another pattern has emerged. A number of countries have seen policymakers enact regulatory changes, Warren observes.
“This includes increased down-payment requirements (Canada), higher investor lending rates (Australia), stricter mortgage standards (Sweden) and new taxes on second homes and rental properties (U.K.),” she says.
Photo: Roger Freedman
