According to the IMF, a global housing crisis is possible. The property market exceeds the historical average in many countries, especially in the case of emerging countries such as Brazil, China or the Philippines. Both in relation to wages and rents, the values are well above the historical average. The IMF urges states to intervene to correct this trend that threatens the global economy.
“Housing is an essential sector of the economy but also a source of vulnerability and crisis. Therefore, while the recent recovery of real estate markets is a good step, we must remain vigilant to avoid another new unsustainable boom,” argued Min Zhu, deputy managing director of the Fund. With central banks lowering interest rates to minimum values, they have been the incentive of property prices. Property values are above average in countries such as, Canada, Belgium, Norway, United Kingdom and Sweden. Taking Canada as an example, the value of the property is 33% higher than its average compared to wages and 87% higher in terms of rentals. The UK has 27% wages and 38% rents. In Japan it is the opposite with 41% below the historical average with respect to wages and 38% with respect to rent. Meanwhile in southern Europe, the values recorded year-on-year price drops. Greece 7%, Italy, 6.6% and Spain 5%.