Real estate markets globally have gone crazy
Welcome to the latest edition of my newsletter which will highlight one LinkedIn trending topic per day curated and cultivated by a LinkedIn News editor, as well as the conversations happening around it.
Real estate markets are looking frothy.
The skyrocketing price of real estate, particularly in the United States, has been one of the most unusual outcomes of the pandemic but it is not unique globally. Bloomberg recently found a number of countries have seen even more eye-watering housing markets and have suggested that they may be looking a lot like 2008 — though there is significant disagreement about the parallels with that crash.
Following their criteria (looking at factors like price-to-rent ratio, price-to-income ratio, real price growth, etc.), Bloomberg ranks New Zealand the 'frothiest' real estate market, followed by Canada, Sweden, Norway, the U.K., Denmark and finally the U.S. Belgium, Austria and France round out the top 10.
But before we start fretting, many have noted that lending standards these days are far higher and what seems like a bubble could simply be supply and demand. For one, my hometown of Toronto has been called a real estate bubble for over a decade and yet it never pops. It just continues to rise.
LinkedIn put this story in front of members and here's what some had to say about it:
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
3 年NB Elite Realty LLC. #832-360-6822
President of Nagle & Associates and Limited Partner at WaveMaker 360 PE/Venture Fund
3 年Yes what is going on is crazy now and is being driven by all the factors many have commented on. We have folks put a $$$$ offer in our box every few months that is very strong and typically as is!!! They just want one walk through and in some cases not even that. I don't see the bubble bursting but feel the market will calm a bit. Most analyst's say the stock market will have it's ups and downs but will be fairly strong for several years. I think the rising price of lumber, now beginning to come back down to earth, and disturbed supply chains are adversely affecting supply which I think will slowly start to rise and pick up speed over the next couple of years. Rhetoric from the Fed seems to favor rising interest rates so that may play a role. Right now selling looks great but after that high wears off; buying well....not so much! My 2 cents....that's what it's worth!
Professor for Dallas College, Keynote Speaker, Marketing Representative, TEDx Finalist, Journal Editor, Corporate and CTE Trainer
3 年Alexander Besant it is true that it is a seller's market. The Dallas area presents some of the beat real estate deals in Texas. This contributes to the boom in real estate. However, there is still opportunity for more acquisition of land for building. Here is a report on the DFW area in Texas. #realestate #Texas #DFW #marketvalue https://www.noradarealestate.com/blog/dallas-real-estate-market/
Owner/Broker at Kapowich Real Estate | Full-service Realtor? in every imaginable market to the Silicon Valley and surrounding areas | 3 decades of professional experience as a broker, instructor, and columnist.
3 年The pandemic forced the citizens around the world to view how they live. More importantly, where. The home, for some, became the classroom, workplace, daycare, and playground—a forced sanctuary for most.?Low interest rates around the world created more affordability.?In the states, it boosted mobility from prosperous communities, exporting bidding wars far and wide.? In my hometown of Sunnyvale, California, in the heart of Silicon Valley, $2,090,000 is the median-priced, single-family home for May 2021. Meanwhile, Sunnyvale Community Services provides groceries to 2,500 households a month.??? In Cupertino, California, ground-zero of Apple Computers, the median-priced single-family home increased 31.9% year-over-year to $2,690,000.??In 2020, the Cupertino Community Services had 4,500 households use their food bank.? Seeking solutions to food and housing insecurities home and abroad are laudable goals. Removing stateside housing construction roadblocks is paramount.?At 500,000 housing builds short each year, America doesn't have time to fret.