Cooling Real Estate Housing Markets in US, UK Risk Deeper Global … – Bloomberg

Bloomberg Surveillance with Tom Keene, Jonathan Ferro & Lisa Abramowicz live from New York, bringing insight on global markets and the top business stories of the day.
Bloomberg Daybreak, anchored from New York, Boston, Washington DC and San Francisco provides listeners with everything they need to know. Hear the latest economic, business and market news, as well as global, national, and local news.
We take a look at China’s international projects and what they mean for the rest of the world. China is investing in and developing projects across the world – how are those moving forward and are they on course to deliver China’s goal of becoming the primary global power by 2049.
Long-Haul Flight Passengers Should Wear Face Masks, WHO Says
Petrol Falls Below 150p a Litre for First Time Since February 2022
Russia’s Budget Gap Surges to Record as War Pressures Finances
ECB Member Schnabel Says Rates Must Rise Significantly and Steadily
Inflation’s Path From Peak Is Next Big Question for US Economy
The Law That Made Social Media Possible Faces a Supreme Court Showdown
Death of Easy Money Creates Financial Upheaval Around the Globe
Apple Plans to Drop Key Broadcom Chip to Use In-House Design
Virgin Orbit Rocket Launch Fails, Denting UK Space Ambitions
Japan Banks Target End-January for Toshiba Bid Loan Decision
UK to Publish Planned Anti-Strike Law in Bid to Stem Disruption
Ukraine Latest: EU and NATO to Sign New Cooperation Agreement
US Consumers Roll Over More Credit-Card Debt as Inflation Bites
Family Offices Bypass Private Equity Funds to Make Bets Directly
BMW Clings to Luxury-Sales Crown as Mercedes-Benz Narrows Gap
Winemakers Champion the Next ‘Perfect Grape’ for Climate Change
Introducing Crash Course: Elon Musk vs. the Twitterverse
Earnings Season Will Hang on Price-to-Recession
Asos Looks a Lot Better Off Without Topshop
Death of Easy Money Creates Financial Upheaval Around the Globe
The Law That Made Social Media Possible Faces a Supreme Court Showdown
Poland’s Election Provides a Path Out of EU Isolation
Iran Ex-Leader’s Daughter Sentenced to Prison Over Protests
Gender Pay Equity Progress in US Is Slowed by Family Leave, Study Says
India’s Foray Into the EV Battery Market Lacks Some Key Ingredients
US Climate Emissions Rose 1.3% in 2022 But Trailed Economic Growth
Vancouver Skyscraper Twists Around Zoning Restrictions
NYC Subway Crime Jumps 30%, Defying Surge in Police Patrols
Extreme Acceleration Is the New Traffic Safety Frontier
How Did Binance Come to Dominate Crypto? (Podcast)
CFTC Sues Trader Over Alleged $114 Million Mango Markets Crypto Swaps Scam
Solana Is Trying to Break Its Ties With Bankrupt FTX (Podcast)
Prague on June 10. Taming frothy housing prices are a key part of policy makers’ goals as they seek to quell the fastest inflation in decades.
 Photographer: Milan Jaros/Bloomberg
Global monetary tightening is squeezing homebuyers, adding risks that a slowdown could ripple through the economy.

Subscriber Benefit
Sign In
A world economy already contending with raging inflation, stock-market turmoil and a grueling war is facing yet another threat: the unraveling of a massive housing boom.

As central banks around the globe rapidly increase interest rates, soaring borrowing costs mean people who were already stretching to buy property are finally reaching their limits. The effects are being seen in countries such as Canada, the US and New Zealand, where once-hot residential real estate markets have suddenly turned cold. 

It’s a sharp reversal from years of surging prices fueled by rock-bottom mortgage rates and government stimulus, along with a pandemic that popularized remote work and sent homebuyers on the hunt for bigger spaces. An analysis by Bloomberg Economics shows that 19 OECD countries have combined price-to-rent and home price-to-income ratios that are higher today than they were ahead of the 2008 financial crisis — an indication that prices have moved out of line with fundamentals.
Taming frothy home prices are a key part of many policy makers’ goals as they seek to quell the fastest inflation in decades. But as markets shudder from the prospects of a global recession, a slowdown in housing could create a ripple effect that would deepen an economic slump.



Add a Comment

Your email address will not be published.