housing-chinaNearly five years after the mortgage bubble burst to elicit the worst financial and economic crisis since the 1930s, rapidly rising property markets are haunting the overall economy across the globe yet again. With all of the warning signs apparent and flashing red, several international nations have already taken actions to cool down the overheating property markets like water to the flames. Signs of forthiness and bubbles are reappearing in the housing markets of Switzerland, Norway, Sweden, France, Finland, Germany, Australia, New Zealand, Australia, and the United Kingdom. In addition, these housing bubbles are also lurking in the emerging markets of Hong Kong, Singapore, Israel, Turkey, Brazil, China, and Indonesia.

As signs are ringing alarms for the housing market entering bubble territory, these economies are showing fast-rising home prices, rising price-to-income ratios, high levels of mortgage debt, low short or long-term interest rates, high unemployment and low inflation levels. While the United States has been held back by an unemployment rate of 7.2 percent, stagnant wages, and tight mortgage standards, Canada is experiencing the highest home price-to-income ratios in more than a decade on the top end of the housing market. Furthermore, several European countries are suffering from higher than average price-to-income ratios with France and Norway being the highest at 132.5 and 129.8 respectively.

In the emerging market economies, the situation is a bit more varied as some have a high per capita income with low inflation and low policy interest rates, such as in Hong Kong and Singapore. On the flip side, Turkey, India, Brazil, and Indonesia are plagued by high inflation growing above the central bank target. While Reuters reports that prices in China are more affordable on average than ten years ago, it is a different tale in the larger metropolitan areas of Shanghai and Beijing. Prices rose a mean 9.1 percent across China in the first half of 203, but they surged 16 percent and 17 percent in Beijing and Shanghai respectively.

However, experts believe that the global economy’s new housing bubbles are not on the brink of bursting just yet since forces feeding them are still fully operative. While these overheating signals continue to grow in intensity, central governments will need to take stricter measures to calm the fire before another global financial crisis spurs.