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On a global scale, the housing market has shown strength during the coronavirus pandemic, despite the economic downturn. 

A recent report by UBS identified three factors for its resilience.

First, as home prices are a backward-looking indicator of the economy, UBS said they react with a delay to economic downturns. The number of transactions declined in most cities in the second quarter of 2020 compared with the previous year, “complicating price formation and reducing the validity of observed prices.”

Second, the majority of prospective homebuyers didn’t suffer direct income losses in the first half of 2020, according to UBS.

“Credit facilities for companies and short-time work schemes mitigated the fallout from the crisis, supporting employees’ housing affordability,” the report said.

And third, governments helped homeowners in many cities during the lockdown periods, with increased housing subsidies, lowered taxes, and suspension of foreclosure procedures.

The report analyzed annual rates of house-price growth in 25 major cities from 2001 through the second quarter of 2020. The markets in the study were Munich; Hong Kong; Zurich; Paris; Singapore; London; Geneva; Frankfurt, Germany; Stockholm; Vancouver, British Columbia; Milan; Toronto; Tel Aviv, Israel; Sydney; New York; Moscow; Amsterdam; Madrid; Tokyo; San Francisco; Los Angeles; Boston; Warsaw, Poland; Dubai, United …read more

Source:: Businessinsider – Finance


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