Global property prices.
House prices have surged in the last five years, mostly in high-income economies where demand has rebounded after falling in the aftermath of the 2008-09 recession. Adjusted for inflation, house prices rose steadily across the world between 2013 and 2018, raising concerns about the downside risks associated with overvaluations.
- Housing markets are difficult to tune; lenient policies aimed at supporting immediate activity will increase longer-run risks.
- Real estate markets are becoming more synchronised, and more exposed to common downside risks if global financial flows drop.
- Cities and financial centres in advanced and emerging nations are most exposed as they enjoy more flows of volatile capital.