RealtorMag recently released an international real estate forecast based on a Fortune magazine article. Fortune reported on 5 markets to watch for potential housing bubbles that could lead to economic disaster.
The magazine listed these five housing markets to watch:
Australia: In Sydney, average home prices rose 13 percent in 2013 to $718,122. The country's central bank has urged lenders to stop making mortgages so easily available.
Find out what's happening in Pasadenafor free with the latest updates from Patch.
Brazil: Home prices in Brazil doubled in five years. In Sao Paulo and Rio de Janeiro, home prices increased 188 percent and 230 percent, respectively, since January 2013.
New Zealand: Prices in Auckland increased 17 percent. Low borrowing costs have fueled the country’s housing market recovery after a near bubble in the early 2000s, but they're also pushing home prices higher.
Find out what's happening in Pasadenafor free with the latest updates from Patch.
China: In Beijing, prices increased 16 percent and Shenzhen by 20 percent in the past year. Residential mortgage debt is relatively low in the country, however, since the Chinese tend to big savers who put their money in real estate, according to Fortune.
United States: Some fear that a bubble is brewing again in the U.S. as home prices made a big recovery after a 2007 downfall.
When investing in international real estate, you must consider a variety of factors and economic conditions to assess risk and pay-off scenarios. Keeping an eye on international real estate markets on the verge of a bubble is a wise precaution.
Teri Barton is a real estate with a special designation in international real estate. To learn more about her, visit her website at NavigatingYourMove.com.
