The average of real estate prices worldwide is returned to levels similar to pre-crisis levels. However, unlike the past phase of rising real estate prices, the current one is not synchronized between the various countries, nor is it homogeneous within them; on the contrary, it is often the result of substantial increases only in some cities and, in most cases, it is the result of shortcomings on the supply side.
In the countries of the euro area, house prices have been increasing since mid-2014 at a pace that has gradually become more sustained. In the second quarter of 2017 the increase of 4,1% y/y is due to a growth in prices especially in Portugal, the Netherlands, Spain and Germany. The market trend in these last two countries shows interesting features. Today in Germany prices are approximately 31% higher than those recorded at the beginning of 2008, while in Spain they are approximately 26% lower. The two markets are driven by completely different dynamics.
Among the main countries in the euro area, Italy is the only one that has not yet recorded significant increases in prices which have been showing variations around zero for six quarters. On the transaction side, since 2014 the market has continued to show signs of liveliness, albeit at a slower pace in the first part of 2017 than in 2016. In the second quarter of this year residential property sales grew by 3,8% y/y. The construction sector has not yet benefited from the recovery attempt underway in the real estate sector.
According to Istat data relating to the second quarter of this year, investments in construction in Italy are 36% lower than in mid-2008, while those in the housing segment alone are 29,5%. Outside Europe attention remains always high towards the real estate markets of China and the United States. Today, the Asian country has one of the highest percentages of home-owning families; on the other hand, in the United States one of the most important consequences of the crisis has been a drop in the percentage of homeowners, which has mainly affected young people and minorities.
