Home prices in Dehli rose 22.68% in the third quarter, the greatest advance of any major city in the world. The change is probably just as much due to inflation in India as any other factor. The same in true in Brazil. the other market where real estate prices are remarkably surging. Sao Paulo prices were up 20.26% year over year in the third quarter
The Global Property Guide reports that
During the year to end Q3 2011, house prices fell in 25 countries, of the 44 countries for which quarterly house price statistics are available, and rose in only 19 countries.
The most troubled nations were Ireland, where unemployment has risen and GDP contracted. Year over previous year in the third quarter, home prices fell 15.61%.
It is no wonder that real estate prices fell across most of the other southern European nations saddled by large debt loads, economies on the brink of depression, and high unemployment. The drop in real estate prices in these areas only serves to further damage any improvement in consumer spending
The report says:
Several other European housing markets experienced accelerated downturns during the year ending in the third quarter of 2011, including Netherlands (-5.20%), Portugal (-6.77%), Slovak Republic (-7.94%), Warsaw, Poland (-7.95%), Spain (-8.41%) and Bulgaria (-9.65%).
Results for the the US and Canada where to be expected given the different recovery rates in the two nations:
The Canadian housing market has been a notable performer in the year to Q3 2011, with house prices in the six cities rising by 3.25% year-on-year, according to Teranet – National Bank Composite House Price Index. Record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence in the housing market. During the third quarter, house prices were up 3.46%.
In the United States, the housing market drifted lower as house prices plummeted by 7.22% (seasonally-adjusted) year-on-year to Q3 2011, according to the Federal Housing Finance Agency (FHFA). However, the number of homeowners who owe more than their homes’ worth decreased modestly in the third quarter, though levels remained high.
Douglas A. McIntyre