Market Cool-Down Insights

2023Q4 IHO Global Housing Outlook

Executive Summary

Housing affordability improves amidst market cool-down and high interest rates. As we wrap up 2023, the global housing market has seen a notable decrease in house prices, enhancing overall affordability compared to the previous year. This trend is driven by the efforts of central banks globally to target inflation, exerting downward pressure on property prices as financial conditions tighten. Simultaneously, strategic government interventions via tax benefits and financial support have alleviated some cost burdens for households. However, the ongoing challenges of sticky inflation, wage dynamics, slowing global activity, trade vulnerabilities, high debt levels, and geopolitical and technological uncertainties pose complex risks that could complicate the trajectory of the housing market going forward.