June 30, 2011
It’s not just the Australian property market that’s in a rut. According to the Knight Frank Global House Price Index, in the first quarter of 2011, house prices rose 1.8 percent globally, compared with 3.3 percent in the final three months of 2010. The figures represent the lowest growth since the end of 2009.
Over the past 12 months, Asia and North America experienced the highest and lowest growth respectively.The Asian market grew 8.4 percent, down from 17.8 percent in the previous year, while home values in North America fell 0.4 percent over the 12-month period.
So what does it all mean? According to a spokesperson from Knight Frank, the data is not surprising and can be attributed to a worldwide slump in economic performance in the first quarter of the year in which 50 percent of countries experienced flat or negative growth.
In 2010, only 38 percent of the world’s nations fell into this category.
The Knight Frank report also said that the current downturn in the global property market would continue and that the slowdown would peak in last three months of this year.But the news is not all bad, with slow but steady recovery predicted in 2012.
If you’re looking to purchase a home in the near future make sure you compare home loans and lenders to ensure you’re getting the best deal possible.
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