In Australia, S&P Global Ratings just decided to downgrade the credit quality of 23 banks and lenders, including Australia’s biggest regional banks. The rating agency fears that the rise in property prices and the high level of household debt could lead, in an adverse scenario, to big difficulties for the Australian economy.
Average house prices in the UK have increased by a yearly rate of 6.2 percent in the year to January 2017 (up from 5.7 percent in the year to December 2016), continuing the strong growth seen since the end of 2013. However, this still remains below the average annual house-price growth seen in 2016 of 7.4 percent.
The US National Association of Home Builders (NAHB) Housing Market Index climbed to 71 in March 2017. Anything above 50 is considered positive. The current US sales index was also at a very high level, at 78, up seven points compared to February. The index of future sales was at 78, a gain of five points compared to the previous month.
Stocks have rallied since the Brexit vote, with the blue-chip index Dow Jones Industrial Average posting a string of record closes lately. But these equity gains have apparently done little to inspire investors
Although fear remains that the Brexit vote could unwind economic gains made in Britain, Europe and the rest of the world, property experts believe that for the real estate industry, Brexit is a lesser enemy.