Without question we now live in a World where economies are intrinsically linked and what happens in one country can have global ramifications. The credit crisis has so aptly displayed these connections and made companies, individuals and Governments acutely aware of the need to understand what is happening around the World and co-operate for the greater good.
Luxury Real Estate prices have been affected all around the World with prices still depressed for the top end market. There is enormous uncertainty and concern from many people as to what the real estate market is going to do both locally and abroad.
At the end of the second quarter of 2009 Canadian prices had increased on average by 0.4% (inflation adjusted) year on year. Australia came in second with an average price fall of 2.8% year on year followed by Spain in third place with an average year on year price fall of 7.9%.
France came in at fourth position, losing 9% of value on average followed by the United States in fifth place losing an average of 12% (inflation adjusted). The United Kingdom had the poorest year on year result at the end of the second quarter losing an average of 14.4% of value after accounting for inflation.
The Canadian Western provinces are performing best of all in terms of pricing and new house start statistics. The results for the 3rd and 4th quarters of 2009 are vital in assessing at what point the Global real estate market is at in terms of recovery and adjustment and I look forward to discussing those in 2010.