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Title: Full analytics of Real estate global situation in this economic crash and rates Post by: Usdcboss on August 05, 2024, 06:08:29 PM Real estate prices are influenced by a variety of factors, including supply and demand dynamics, interest rates set by central banks, and the availability of mortgage financing.
However, not all properties are affected equally by these dynamics. Properties purchased with cash may be less sensitive to fluctuations in interest rates since they do not rely on financing. High-end properties or those in desirable locations often see different pricing behavior compared to lower-end properties that are more dependent on mortgage financing. Properties that are heavily financed through mortgages may experience significant price declines as affordability decreases and buyer demand wanes. Conversely, cash transactions might still reflect true market value based on supply and demand since these buyers are less sensitive to interest rate changes. So If you have mortgage and you fall in to area where a lot people have mortgage in your city or neigbourhood then your home Market price is more influenced of central bank rates. Since the mortgage is leverage position priced in with central Bank rates not with much of real organic supply and demand of asset. Mortgage-Heavy Real Estate Markets In regions where real estate transactions are predominantly financed through mortgages, the market is more sensitive to changes in interest rates. These areas typically have a higher percentage of homebuyers utilizing loans to finance their purchases. The following countries and cities are known for having significant reliance on mortgages: United States Major cities: New York City, Los Angeles, Chicago Canada Major cities: Toronto, Vancouver United Kingdom Major cities: London, Manchester Australia Major cities: Sydney, Melbourne Germany Major cities: Berlin, Frankfurt France Major cities: Paris, Lyon Spain Major cities: Madrid, Barcelona Italy Major cities: Rome, Milan Netherlands Major cities: Amsterdam, Rotterdam Sweden Major cities: Stockholm, Gothenburg New Zealand Major cities: Auckland, Wellington Ireland Major cities: Dublin, Cork Belgium Major cities: Brussels, Antwerp Austria Major cities: Vienna Switzerland Major cities: Zurich, Geneva Japan Major cities: Tokyo, Osaka Cash-Dominant Real Estate Markets In contrast to mortgage-heavy markets, some regions see a higher proportion of cash transactions in real estate purchases due to cultural factors or economic conditions that favor cash buying over financing options: Countries with low mortgage usage and high cash transactions: Italy (especially rural areas) Greece (islands and tourist areas) Portugal (Algarve region) Turkey (tourist hotspots) Spain (rural areas) France (provinces) Mexico (beachfront properties) Thailand (popular tourist destinations) Indonesia (Bali) Philippines (resort areas) Brazil (coastal regions) Also would include various countries in Africa and parts of Eastern Europe where cash transactions are more common due to limited access to credit. Title: Re: Full analytics of Real estate global situation in this economic crash and rates Post by: Waldorf77 on August 05, 2024, 10:37:34 PM Real estate prices are influenced by a variety of factors, including supply and demand dynamics, interest rates set by central banks, and the availability of mortgage financing. However, not all properties are affected equally by these dynamics. Properties purchased with cash may be less sensitive to fluctuations in interest rates since they do not rely on financing. High-end properties or those in desirable locations often see different pricing behavior compared to lower-end properties that are more dependent on mortgage financing. Properties that are heavily financed through mortgages may experience significant price declines as affordability decreases and buyer demand wanes. Conversely, cash transactions might still reflect true market value based on supply and demand since these buyers are less sensitive to interest rate changes. So If you have mortgage and you fall in to area where a lot people have mortgage in your city or neigbourhood then your home Market price is more influenced of central bank rates. Since the mortgage is leverage position priced in with central Bank rates not with much of real organic supply and demand of asset. Mortgage-Heavy Real Estate Markets In regions where real estate transactions are predominantly financed through mortgages, the market is more sensitive to changes in interest rates. These areas typically have a higher percentage of homebuyers utilizing loans to finance their purchases. The following countries and cities are known for having significant reliance on mortgages: United States Major cities: New York City, Los Angeles, Chicago Canada Major cities: Toronto, Vancouver United Kingdom Major cities: London, Manchester Australia Major cities: Sydney, Melbourne Germany Major cities: Berlin, Frankfurt France Major cities: Paris, Lyon Spain Major cities: Madrid, Barcelona Italy Major cities: Rome, Milan Netherlands Major cities: Amsterdam, Rotterdam Sweden Major cities: Stockholm, Gothenburg New Zealand Major cities: Auckland, Wellington Ireland Major cities: Dublin, Cork Belgium Major cities: Brussels, Antwerp Austria Major cities: Vienna Switzerland Major cities: Zurich, Geneva Japan Major cities: Tokyo, Osaka Cash-Dominant Real Estate Markets In contrast to mortgage-heavy markets, some regions see a higher proportion of cash transactions in real estate purchases due to cultural factors or economic conditions that favor cash buying over financing options: Countries with low mortgage usage and high cash transactions: Italy (especially rural areas) Greece (islands and tourist areas) Portugal (Algarve region) Turkey (tourist hotspots) Spain (rural areas) France (provinces) Mexico (beachfront properties) Thailand (popular tourist destinations) Indonesia (Bali) Philippines (resort areas) Brazil (coastal regions) Also would include various countries in Africa and parts of Eastern Europe where cash transactions are more common due to limited access to credit. Ideed mortgage and loans and credit are leverage and some point it will end bad. Canada is in deep leverage credit there is buy to let ponzi going on a lot |