As interest rates hit borrowers, we wonder if the global housing market is headed for a painful downturn.
At the end of 2021, things looked good for the housing sector.
House prices in the countries of the Organization for Economic Co-operation and Development (OECD) grew at the fastest pace in 50 years. And all of this was backed by low borrowing costs and savers with money to burn.
Now, a year later, things don’t look so rosy.
High inflation has led central banks to raise their base rates, wages are not keeping pace with the rising cost of living and the economic fallout from the war in Ukraine will be felt for some time to come.