The Real Estate Market has the Trends of Falling Down in Many Countries (II)

Reuters reported that the adjustment of the US real estate market was affected by rising mortgage interest rates and a shortage of land and labor, steel coil manufacturers which led to tight real estate inventories and rising house prices. Although wages rose by 3.2% in December 2018, surpassing house price increases for the first time since 2012, economists warned that tax reforms at the end of 2017 in the United States reduced mortgage interest and real estate tax deductions, thereby reducing The attraction of ownership of the home.

In Australia, Ken Morrison, chief executive of the Australian Real Estate Industry Association, said that the real estate industry is slowing as a major driver of the Australian economy, due to the tightening of financing channels and the pessimistic outlook on the economic outlook. The survey showed that the confidence index in Victoria and New South Wales fell the most, and the expectation of debt financing availability fell by 20 index points in the past 12 months; square steel tubing expectations for housing capital growth fell to -23 index points for 2011, the lowest level since the beginning of the annual survey. Respondents believe that the availability of financing will deteriorate further in the coming year.

The Canadian real estate market has risen sharply since the financial crisis, but it has also brought about a sharp increase in real estate-related debt. Since 2008, Canada’s housing debt has risen from 150% of resident income to 178% in 2018. In the past 18 months, Bank of Canada has raised interest rates five times, and financial pressure on highly indebted home buyers has risen, with new home sales expected to be slower in 2019. At the same time, the mortgage stress test has also caused many residents to become more risky private mortgage lenders.

According to the latest data from the Monetary Authority of Singapore, in the first 11 months of 2018, the growth rate of housing loans in Singapore slowed to 1.9%, less than half of the growth rate of 4.2% in 2017. On July 5, 2018, the Monetary Authority of Singapore, the Ministry of National Development and the Ministry of Finance jointly issued a notice to increase the stamp duty rate for additional buyers by 5-15 percentage points from July 6, and tighten the loan limit. The Singapore government said the move is aimed at cooling the real estate market and keeping house prices rising in line with economic fundamentals.

A Reuters survey of local industry experts shows that the US housing price rise this year is expected to reflect the economic slowdown, experts believe that real estate transactions have peaked. According to Fannie Mae’s report, the proportion of respondents who believe that the right time to buy a house is down by 12 percentage points to 11%, while the number of people who think it is suitable for selling has increased by 1 percentage point to 36%. Looking ahead, consumers expect housing prices to continue to slow in 2019.

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