US property leads global recovery
Europe may appear to be sinking deeper, according to Global Property Guide's latest house price analysis, but one country is bucking the global trend: America.
The Federal Housing Finance Agency's (FHFA) seasonally adjusted purchase-only house price index in the US rose 1.12% year-on-year in Q2 2012, in sharp contrast with the 8.76% decline during the same period last year, which GPG reports as a sign that the US housing market is now recovering.
The S&P/Case-Shiller seasonally-adjusted home price index fell by 0.74% during the year to Q2 2012, the lowest annual decline since Q3 2010. Quarter-on-quarter, the index rose by 1.41% in Q2 2012.
"Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter," said Andrew Leventis of FHFA. "The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase."
Elsewhere in North America, Canada's housing market has also been a strong performer year-on-year in 2012, with house prices in its eleven major cities rising by 4.06% during the year (the same period last year saw a 0.47% rise). House prices rose by 1.59% quarter-on-quarter in Q2 2012, a significant turnaround from quarterly declines of 0.52% in Q1 2012, and 0.2% Q4 2011.
House prices in Canada surged by 62% from Q1 2000 to Q1 2008, and rose by another 18% from Q2 2009 to Q2 2012, despite tighter mortgage and lending regulations imposed by the government.