The 11 Worst Housing Markets In The World


Photo: Wikimedia Commons

Today we saw dismal numbers out of Case-Shiller, indicating the U.S. housing double-dip is very much on.But what if we told you the U.S. was only the seventh worst housing market in the world?

New data from Knight Frank shows that to be the case, with several big economies languishing under the weight of their own housing bubble’s eruption.

But what’s next for these markets? For many, 2011 will hold the chance of a turnaround, but for others, particularly in the eurozone, it appears a rebound will be unlikely.

#11 Czech Republic

Annual Change: Down 3.0%

Q4 2010 Change: Down 0.9%

Outlook: Unemployment is continuing to rise, wage growth is weak, and yet the central bank may raise rates, according to board member Pavel Rezabek; weak.

Source: Knight Frank

#10 Spain

Annual Change: Down 3.5%

Q4 2010 Change: Down 0.4%

Outlook: Spain continues to struggle with a banking sector crisis driven by impaired balance sheets as a result of the country's housing market collapse. This, coupled with unemployment over 20%, will keep the market weak for some time.

Source: Knight Frank

#9 Japan

Annual Change: Down 3.6%

Q3 2010 Change: Down 0.8%

Outlook: Japan's economic growth should boom in the latter half of 2011, as a result of reconstruction. With many people displaced as a result of the disaster, there may be higher demand for new and existing homes, which could drive up prices.

Source: Knight Frank

#8 Portugal

Annual Change: Down 4.0%

Q4 2010 Change: Down 1.2%

Outlook: Portugal's growth remains sluggish and its unemployment high. Foreign demand seems the most likely source of growth for the country's real estate sector.

Source: Knight Frank

#7 United States

Annual Change: Down 4.1%

Q4 2010 Change: Down 2.1%

Outlook: The U.S. is in the midst of a double-dip in its housing market. Data does not suggest there will a rebound anytime soon.

Source: Knight Frank

#6 Greece

Annual Change: Down 6.0%

Q4 2010 Change: Down 0.7%

Outlook: In the midst of heavy austerity cuts, Greece is seeing unemployment boom. The country is in the midst of a long-term restructuring while in receivership of aid from the EU and IMF. As such, no rebound in the housing market should be expected, unless foreign demand picks up suddenly.

Source: Knight Frank

#5 Dubai, UAE

Annual Change: Down 6.1%

Q3 2010 Change: Down 6.1%

Outlook: Prices continued to fall in Q1. There is some suggestion that supply is in decline, so prices could pick up as a result.

Source: Knight Frank

#4 Croatia

Annual Change: Down 7.2%

Q4 2010 Change: Down 0.9%

Outlook: Unemployment is on the rise, the country's economy shrank last year, and people are protesting against the government. Likely not good.

Source: Knight Frank

#3 Ukraine

Annual Change: Down 7.8%

Q3 2010 Change: Flat

Outlook: Consumer confidence is in decline, the inflation rate is improving, but still high. Growth, however, is looking good. So this market may turn around in 2011.

Source: Knight Frank

#2 Lithuania

Annual Change: Down 10.1%

Q3 2010 Change: Down 3.9%

Outlook: GDP growth is expected to be at 5.8% in 2011, but the country is still recovering from a housing bubble.

Source: Knight Frank

#1 Ireland

Annual Change: Down 10.8%

Q4 2010 Change: Down 3.5%

Outlook: Growth is expected to be weak as austerity measures persist. The banking sector is still in terrible shape. This does not look likely to improve anytime soon.

Source: Knight Frank

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