Knight Frank’s Global House Price Index tracks the performance of over 50 mainstream national housing markets around the world using official data from Central Banks or National Statistic Offices in each country.
Key Highlights:
- Annual global house prices continue to rise despite central banks’ efforts to combat inflation through higher interest rates. Average annual price growth stands at 3.5%, closely approaching the pre-pandemic ten-year average of 3.7%.
- Of the 56 markets monitored, 35 experienced annual price growth, while 21 witnessed declines.
- The rate of price growth reached a peak of 10.9% in Q1 2022 but sharply slowed to 2.2% in Q2 of this year. The upturn in the latest quarter indicates strengthening price growth in several markets, including Ireland, Sweden, the UK and the US.
- Remarkably, despite the fastest rise in interest rates in history, residential prices only dipped slightly at the beginning of this year, and have since resumed growth.
- The resilience of house prices can be attributed to limited available stock, increased household savings and robust wage growth.
- The primary concern for markets however, arising from the resilience of house prices is the slower recovery of sales volumes. Across developed economies, sales have declined by 15% to 25% from their recent peaks. The absence of a pricing correction indicates that this constraint on activity is expected to persist, likely through 2024 and potentially well into 2025. Activity is anticipated to rebound only when rates are substantially lowered.
Discover more by delving into our latest Global House Price Index Q3 2023 Report below.
