![]() ![]() ![]() Combined with notably increased real estate prices, the amount of living space that is financially affordable for a highly-skilled service worker is, on average, one-third lower than it was right before the pandemic. Mortgage rates have almost doubled on average across all cities analyzed since their lowest point in mid-2021. Cities in today’s bubble risk territory, have experienced price ascents by an average of 60% in inflation-adjusted terms during this period, while real incomes and rents have increased by only about 12%. Despite a buoyant year, Dubai’s housing market is in fair-value territory too.Īs a result of low interest rates, home prices have continuously drifted apart from incomes and rents over the past decade. Sao Paulo – an addition to this year’s index – is fairly valued alongside Milan and Warsaw. ![]() Other housing markets with signs of overvaluation include Geneva, London, Madrid, and Singapore. Housing markets in Stockholm, Paris, and Sydney remain overvalued despite some cooling trends. In the US, all five analyzed cities are in overvalued territory with the imbalance more distinct in Miami and Los Angeles than in San Francisco, Boston, and New York. Risks are also elevated in Zurich, Munich, Hong Kong, Vancouver, Amsterdam, Tel Aviv, and Tokyo. Toronto and Frankfurt top this year’s index, with both markets exhibiting pronounced price bubble characteristics. Zurich, 12 October 2022 – The UBS Global Real Estate Bubble Index 2022, a yearly study by UBS Global Wealth Management's Chief Investment Office, indicates that imbalances in global metropolitan housing markets are highly elevated and prices are out of sync with rising interest rates. ![]()
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