The red hot Canadian housing market isn’t alone, with global housing prices growing at their fastest rate since the financial crisis, according to new data from the Bank for International Settlements (BIS).
Amid the Covid-19 pandemic, and extraordinary fiscal and monetary measures to combat its effects, global property prices rose by 4% (year over year) in the fourth quarter of 2020, BIS reported. This increase represents the fastest growth rate since the immediate aftermath of the global financial crisis.
Advanced economies led the way with an average increase of 7% in the fourth quarter, while prices were up by an average 2% in emerging markets.
BIS reported that Canada was among the hottest markets, with real prices up 11%, outpaced only by New Zealand (13%).
Prices were also up 8% in the U.S. and 6% in both the UK and Europe.
In real terms, global house prices are now up by about 21% on average since the financial crisis (27% in advanced economies and 17% in emerging markets), BIS said.
“Among the G20 economies, real prices have risen markedly over the past decade in India, Canada, Germany, United States and Mexico,” the bank noted.