Runaway surge in global house prices drawing to a close

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Runaway surge in global house prices drawing to a close
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Ultra\u002Dlow interest rates and strong demand from remote workers are now coming to an end. Read more.

Ultra-low interest rates and strong demand from remote workers which helped house prices in most major economies to outpace not only real wages but also returns on their respective stock markets was now coming to an end.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

Reuters polls of over 100 housing strategists taken Aug. 12- Sept. 2 showed house prices in nearly all the nine major housing markets to slow over the next two years by more than was predicted three months ago. Despite that tempered outlook, a crash in house prices was not a view shared by most analysts as strong labor markets across the developed world were expected to keep delinquency rates from rising.

Bailey said the most likely near-term outlook for property markets is that turnover slows to a trickle as sellers are reluctant to admit the market is falling and they need to cut their asking prices.

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