Some states are identified as some of the worst housing markets in this country. As large as the U.S. is, there are bound to be wide variations from state to state and even from city to city. For example, in Florida there are cities with a large inventory of foreclosed properties to be dealt with, which slows progress. On the other hand, in Miami, prices are rebounding fast. Many feel it is due to location on the coast. Will we ever return to the good old days when the three major factors making real estate attractive were location in first, second and third places?
For now, that is not the case. As the U.S. is undergoing an upswing leading towards ever increasing recovery, the same is not true in many countries around the world. The Global Property Guide reports that home prices fell in many of the group of 22 European countries that provided data. There were 15 countries in the group of 22 that fell.
Prices have declined in the Asian countries as well. According to reports, plummeting prices show no signs of stopping their downward trend. In addition to affecting each country with declining prices on homes, the large scope of the problem will be detrimental to global economy. Global Property Guide’s report focused on 7 countries of the 15 with the biggest year-over-year reductions in the evaluated prices of properties.
Here is the list of the “most reduced prices” percentage-wise:
Ireland home prices fell by 16.85 year-over-year. When measured quarter 0 to quarter 2, in 2012, they fell 2.91 percent.
In Spain, the home prices were 13.18 percent year-over-year and 6.02 percent quarter-over-quarter in 2012.
Greece is in the news for financial difficulties in many facets and the declining price of housing is one, with an 11.92 year-over-year drop and a 4.15 percent quarter-over-quarter drop in 2012.
Portugal fares a little better with a 10.95 percent drop in home prices, year-over-year. Quarter-over-quarter in 2012 was 1.68 percent lower.
In the Netherlands home prices were 10.12 percent less year-over-year and 1.83 percent less quarter-over-quarter in 2012.
In Warsaw, Poland the decreases were 8.19 percent year-over-year and 0.86 percent quarter-over-quarter in 2012.
Finally, in Cyprus the prices went down 7.68 percent year-over-year and 3.94 percent quarter-over-quarter.
It seems that as prices rise in U.S. they fall in the rest of the world. The price fluctuations wreak havoc in the financial arena and are influenced by the job market and other factors. No single factor is isolated. Home prices, like any other financial aspect of an economy, rise and fall due to many influences. The worst housing markets of 2012 may improve during 2013.