Global Housing Market to Grow at a Moderate Pace in the Next Two Years: Reuters Poll

A recent Reuters poll reveals that easy money boosting the housing market worldwide may be going away soon. Since the financial crisis about

Written by: Arslan Butt • Wednesday, November 27, 2019 • 1 min read

• Last updated: Wednesday, November 27, 2019

Global Housing Market to Grow at a Moderate Pace in the Next Two Years: Reuters Poll

A recent Reuters poll reveals that easy money boosting the housing market worldwide may be going away soon. Since the financial crisis about a decade ago, most central banks around the world have kept interest rates low to spur spending and economic growth, also supporting low mortgage rates for house buyers.

However, this practice has caused asset prices to soar to record highs over the past few years, with house prices growing at a faster pace than CPI and wage growth in several markets. As a result, house prices have turned unaffordable, especially for first-time home buyers.

Economists polled anticipate that the trend in house prices could soon start to be driven more by incomes than by lower borrowing costs. External risks such as the trade war and an overall weakening in global economic growth are also likely to keep the housing market in several economies under pressure.

House prices, especially in the UK and the US, could grow at a slower than expected pace over the next two years while house prices in Dubai are expected to continue their steep decline till 2021. In the emerging markets of China and India, house prices are expected to increase by 3% in 2020, close to key inflation levels in each market.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.