Back to top

Real Time Insight

According to the IMF, housing prices are going through the roof in most countries and posing a threat to economic stability. The global house price index has been rising for seven quarters in a row and prices are now well above historical averages in a majority of countries, in relation to income and rents.

As many central banks have cut their interest rates to record low levels, home prices have been heating up.  According the IMF report--Era of Benign Neglect of House Price Booms is Over—“While a recovery in the housing market is surely a welcome development, we need to guard against another unsustainable boom. ….boom-bust patterns in house prices preceded more than two-thirds of the recent 50 systemic banking crises".

Some emerging markets have seen fastest appreciation with house prices up more than 10% in the Philippines, 9% in China and 7% in Brazil from a year ago.



In the US, house prices have been rising fast but are still not overvalued--at 13.4% below their long-run average relative to incomes, and 2.6% above their long-run average relative to rents but the IMF warned that "detecting over-valuation in housing markets is still more of an art than a science".

Do you think it is time central banks should start paying attention to rising housing prices and take actions to contain housing booms. Please join the discussion below.

Just Released: 5 Stocks to Double

Today, you are invited to download a free Special Report from Zacks Investment Research. It reveals five moves that could gain +100% and more in the next 12 months:

One is a "boring" business delivering blistering growth. Another is a red-hot oil and gas producer set to surge on a drilling breakthrough. Still another, an online payment provider, ignited a 53% sales explosion during the past year.

Close This Panel X

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%