A global real estate price index is being updated by a group of experts and investors, who have found that the real estate prices of most countries have become significantly overvalued in recent years.
The index, which uses information from global real-estate transactions, shows that real estate values in China, India, and the U,S., have increased nearly 40% since the start of the year.
The global real value of homes has also grown by 30% in the last five years.
According to the latest report from the index, the average price of a home in China is now more than double the value of a comparable house in India, a sign that the Chinese real estate sector has become more expensive.
But, that hasn’t stopped many other countries from seeing their real-life prices rise in the same time.
In the United States, the median home price in the U-S.
soared from $5.2 million in 2016 to $7.9 million in 2017, according to data from Realtor.com.
Real estate prices in Germany are up from $3.7 million in 2019 to $5 million in 2020, while the average house price in Sweden has grown from $2.3 million in 2018 to $3 million.
Meanwhile, the price of homes in the Netherlands is down from $1.9-million in 2020 to $1-million today.
In India, the country with the world’s largest population, prices have also increased by 30%.
Real estate in India is currently priced at around $3,000 per square foot, whereas in the United Kingdom, it is priced at $2,500.
The United States is home to about 7.7% of the world population and the United Nations estimates that by 2050 the world will have a population of roughly 11 billion.
But real estate in the US has remained flat for the last few years.
Real Estate and Urban Economics, a research firm based in Washington, D.C., told CNBC that the latest figures on the real-world prices of housing, especially in major cities, shows why the U.”s real estate markets have become so overpriced.”
“We also see that new buyers are not getting in and bidding up prices.” “
Real estate analyst Andrew P. Shaver told CNBC the market for homes is already saturated. “
We also see that new buyers are not getting in and bidding up prices.”
Real estate analyst Andrew P. Shaver told CNBC the market for homes is already saturated.
He said he believes the U’s current housing bubble is a bubble.
“There’s been a lot of money coming in from investors, and I think it’s been fueled by people buying up properties and then reselling them off,” he said.
“In a real-time market, this is a real problem.”
Real Estate Bubble?
While the U”s housing market is overvalued, it’s not because of its size, Shaver said.
The real estate bubble is just the latest in a long line of bubbles in the real economy.
The housing market was also in crisis in the 1990s and the 2000s, according a 2007 report from economists at the University of California, Berkeley.
It’s not the bubble that caused the financial crisis, it was the bubble,” Hirsch said.