USA
The Federal Reserve’s 50 basis point rate cut on September 18, 2024, is expected to lower borrowing costs, providing relief for homebuyers and investors. Mortgage rates may decrease, spurring demand for housing in regions such as the Northeast and Midwest. However, affordability concerns remain in areas like Florida, where rising insurance costs continue to be a challenge for the housing market.
Source: Key takeaways from the Fed’s decision to deliver a jumbo-sized interest rate cut
U.K.
London’s housing market defied the national trend in July, showing resilience despite broader declines in property prices across the U.K. While other regions experienced price drops due to high inflation and mortgage costs, London maintained stable growth, driven by strong demand in the capital. Analysts note that London’s unique market dynamics, including foreign investment and limited housing supply, have insulated it from the national downturn.
Source: London house prices defy national mood, drop in July
Canada
In August 2024, Canadian home sales increased by 1.3%, particularly in cities like Calgary and Ottawa. While Toronto and Vancouver remain sluggish due to high home prices and affordability challenges, smaller urban areas are experiencing renewed interest. The recent interest rate cuts are making it easier for buyers to enter the market, although overall sales remain below historical averages. The long-term trend is uncertain, with affordability still being a significant issue in major cities.
Source: Canada Existing-Home Sales Climb 1.3% in August From July
Australia
Australia’s housing market is facing a crisis, with over a quarter of suburbs experiencing declining property values. Interest rate hikes have weakened demand, particularly in outer and middle-ring suburbs in cities like Sydney, Melbourne, and Brisbane. Despite strong population growth, rising rates have made housing less affordable, driving prices down in suburban areas. Inner-city markets are more resilient but are not immune to the slowdown.
Dubai
Dubai’s real estate market continues to attract investors, with both apartments and villas showing strong demand. Key investment areas such as Dubai Marina, Downtown Dubai, and Jumeirah remain popular. Buyers are drawn to off-plan properties due to favorable payment plans, while resale properties are seeing increased interest due to strong rental yields. Thorough property inspections and financial planning are essential for those entering the market, particularly with high demand for both luxury and mid-market properties.
Source: Dubai real estate guide: Resale market trends, opportunities and popular areas to look out for
Singapore
The U.S. Federal Reserve’s recent interest rate cut is influencing Singapore’s financial landscape, particularly affecting mortgage and savings interest rates. As borrowing becomes cheaper, homeowners with variable-rate mortgages may see lower monthly payments, and real estate investors could benefit from reduced financing costs. Analysts predict that the real estate market, especially in high-demand areas like Orchard Road and Marina Bay, could experience a rise in investor activity as financing becomes more affordable.
Source: CNA Explains: What does a Fed rate cut mean for you in Singapore?
