Another Top-10 List — Hottest (and Coldest) Housing Markets in the World

Housing is a function of local markets but is driven by a global economy that varies dramatically from place-to-place.  Local, national and global economies and market dynamics come into play.

If you are one of those seeking to purchase a home today in the U.S, given the tight or utter lack of inventory, you may incorrectly conclude that the U.S. is in the top-10.   But that is not the case when the ranking of the top-45 hottest housing markets was completed by the Global Property Guide.  The U.S., in fact, came in 19th out of the top-19 on an inflation-adjusted basis.

So where are housing markets the hottest in the world today?  The following table shows the top-10 housing markets ranked by year-over-year home price on a real (inflation adjusted) basis.  The first percentage column shows the latest year-over-year gain, the second details what happened a year ago, while the last column shows the gain sequentially from Q4 2016 to Q1 2017.  All inflation adjusted.

7-3-17 table

Some of these markets are cooling, despite remaining in the top-10 hottest markets in the world.   Look at Montenegro as an example.  While their inflation adjusted home value rose 8.68 percent in the latest 12-months, it rocketed up almost 20 percent from Q4 2016 to Q1 2017.  Others are cooling.  Canada’s Q1 2017 year-over-year house price gain was 11.7 percent (or a simple average of 2.925 percent per quarter).  In the latest quarter, however, the 1.15 percent gain, if annualized at this level, would indicate a 4.6 percent yearly gain.

Want to see these rankings from a nominal (not inflation adjusted) basis?  Things change for some.  There are a few swaps and re-rankings.  New to the top-10  ignoring inflation include Turkey and the Philippines.  To give you an indication of country-specific inflation, contrast the nominal price gain in Turkey (13.34 percent) versus the real price gain of 1.84 percent, indicating inflation in the past 12-months of 11.5 percent.

7-3-17 table2

In addition to these top rankings, take a look at the 10-bottom ranking housing markets on a real (after inflation) basis. As I always say, for every winner there is a loser.

7-3-17 table3

To read the entire ranking of the 45 top hottest housing markets with related metrics click is a phenomenal site for comparisons of real estate markets around the world.  In addition, they include country-specific real estate practices including doing business under diverse legal systems, including typical transaction costs and who pays, and even tenant-landlord comparisons and restrictions.  As an example, click this link:    then Click any country you wish. is a powerful site allowing instant comparison of residential markets around the world.



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