If you are a real estate agent in the United States, it likely comes as no surprise to you that the market is diverse. No two neighborhoods sell at exactly the same pace, even within the same city or county. When you look at the concept of real estate on a broad scale, you see similar differences from state-to-state and even country-to-country.
Most recently, it has become clear that certain parts of the world are experiencing a real estate surge. Why is this happening? What does this mean for your real estate career in the United States? Where should you be focusing your efforts? This guide will help you figure this out.
Europe’s Real Estate Price Surge
As of 2016, most of Europe’s real estate markets were on the fast track. In fact, 18 out of 23 were unabashedly booming. Iceland became the country with the strongest real estate market in the entirety of Europe, and it also zoomed nearly to the top in a look at the entire world. While home prices in Iceland had increased nearly 7% in 2015, the increase was over 12.5% in 2016.
Why Iceland? Why Europe? Likely factors leading to house pricing surges here are the strong demand and a supply of houses that is not growing quite fast enough to meet it. This is especially true in Iceland’s capital of Reykjavik, a city with a growing desirability. In analyzing the figures on a city-by-city basis, it will become much more clear that supply and demand is a significant reason for these changes.
Asia’s Real Estate Price Surge
House prices are not just surging in Europe. Asia is also seeing quick changes in home values and pricing. China is leading the pack in this area, with Shanghai seeing swift growth. In 2015, the city saw an increase in pricing of 9.3%, and just last year the prices were increasing by 21.3%. It would appear that there is a much deeper disparity in real estate markets throughout Asia in comparison to markets in Europe.
In China, much of the reason for this sudden growth is linked to new measures implemented by the government to help the housing market. In other countries, such measures have not necessarily been implemented. In fact, some countries in Asia are in fear of a housing bubble burst, which will have a significant impact on housing affordability and the real estate market as a whole.
What Do International Pricing Surges Mean for the United State?
Now, all of this does not mean that real estate agents in the U.S. need to be afraid of any sort of significant decline. The biggest declines in housing prices occurred in countries like Montenegro, Russia, Qatar, Brazil, and Mongolia.
Pricing surges often lead to bubbles, as we have seen in the U.S.A. as well. One thing that real estate agents can do is arm themselves with knowledge about the world’s markets. Understanding the signs of a real estate bubble and the pros and cons of housing price surges means that real estate agents know how to plan ahead. Continuing education courses can help to supply you with this info. Contact us for more information about real estate courses that can help you stay on track.