Original title: global house prices are rising at the fastest rate in history
Newly released data on existing home sales in the United States showThe median price of existing homes in the US surged 24 per cent to a record $363300. According to statistics, this data has been on an upward trend since the beginning of the year, which has become another proof that the real estate market is in a bubble.
Lawrence Yun, chief economist of the National Association of Realtors (NAR), commentedWith inventories still tight, the median home price is unlikely to fall, but he expects house price growth to slow by the end of the year.
Goldman SachsRecent reports from big banks such as Bank of America have tried to refute speculation that the US housing market is once again in a huge bubble. But it turns out that not only the US housing market is mired in the quagmire of a bubble, but the whole world is mired in a huge real estate bubble.
Bank of Montreal of Canada(BMO) analyst Doug Porter points out that real house prices around the world are rising at the fastest pace since records began for 45 years. According to data compiled by the Dallas Fed, global house prices are now rising by more than 6% year-on-year, surpassing the peaks of 2005 and 1989.
The data provided by BMO covers 24 countries, including the G7 Group and countries as diverse as South Korea, Israel, South Africa, New Zealand and Slovenia. The data are weighted by national GDP, so the US has the largest weight.
Before the latest US data were released, Canadian house prices had the biggest bubble, with real house prices rising more than 20 per cent year-on-year. But now the United States leads the world with an increase of 23.4%.
However, Porter noted that Canada is likely to regain the title of "No. 1 in the real estate bubble". He pointed out that the growth of residential mortgage loans in Canada is accelerating, growing at 8.3% year-on-year in May, the highest level since 2010. The fastest growth in the past three decades was 14 per cent in 2007, but Canada has grown at an annualised rate of nearly 12 per cent in the past three months.
If Canadian house prices continue to rise at this pace and sales remain strong, a milestone in 2007 could be broken.
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