International Appreciation will Fuel US Real Estate
As we become more of jet-setting world and as the dollar continues to make Euros and Pounds more valuable here, the continued appreciation of overseas real estate will also contribute to the health of our US real estate market.
While many Americans have used appreciation from US properties to fund foreign purchases in recent years, it’s Europe’s turn now.
See the following post from Real Trends E-Mail Update
|Global house prices continue to rise in 2006|
| Northern European countries saw the highest house price rises in 2006, among the 40 countries monitored by the Global Property Guide. Leading the charge was Estonia with an impressive 54 percent house price increase in 2006. Estonia was followed by Denmark which experienced 23 percent house price rises in 2006, then by Norway (14%) and Ireland (13%). Other countries in northern Europe also had impressive house price increases, including Sweden, the UK and Finland.
Outside Europe, South Africa, 2004’s star performer, continued to experience strong house price growth, with 2006 house price rises of 12.7 percent. Countries attracting immigrants are also experiencing strong property price increases, particularly Canada (11%), New Zealand (10%) and, to a certain extent, the U.S. (8%) and Australia (6.5%).
France experienced a 12.5 percent house price increase from 3Q 2005 to 3Q 2006, while Spain registered a 10 percent rise in 2006 and Italy 6.6 percent. However property prices in Portugal dipped marginally (-0.4%), following a lackluster recent past.