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Low rates and global house prices
In a year dominated by the worst economic crisis in at least a century, house prices globally rose at their fastest pace in three years during 2020, according to new analysis of 50 global housing markets from Kate Everett-Allen.
Prices increased by 5.6% on average, up from 5.3% in 2019, and some 89% of countries and territories saw prices increase during the year. Turkey leads the index for the fourth consecutive quarter and several markets including New Zealand (19% annual growth), Russia (14%) the US (10%), Canada and the UK (both 9%) accelerated up the rankings in the last three months.
Low interest rates are fueling demand whilst inventory levels are tight in some markets with sellers reluctant to market their property until they can identify their next home, according to Kate. Knight Frank talked on Monday about rising asset prices fueling inequality and governments from New Zealand to China searching for ways to intervene effectively. This is set to become a big theme for policy makers.