The global housing recovery continues to gather momentum. Nourished by exceptionally low borrowing
costs, direct government purchase incentives and improving confidence in the fledgling economic
recovery, residential real estate in many major developed nations firmed up further in the third quarter
of 2009. Canada still leads the pack among the markets we track. Inflation-adjusted average home
prices in the July to September period were up 11% from the same quarter a year ago, a dramatic
turnaround from the 10% yearly decline recorded in the opening months of 2009.
A shortage of homes for sale, alongside strengthening housing demand, is contributing to the firming in
prices in a number of countries, including Canada, Australia and the U.K. New construction essentially
ground to a halt at the onset of the global financial crisis in the fall of 2008, and has yet to fully recover.
Meanwhile, while ‘first-time buyers’ are out in full force, many potential ‘move-up sellers’ remain on the
sidelines, contributing to a shortage of listings.
Source: Adrienne Warren, Scotiabank Group – Global Real Estate Trends, January 11, 2010