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While home prices in the U.S. have been in a steady and seemingly unstoppable ascension, they are relatively mild compared to the skyrocketing prices seen in other parts of the world.
According to the latest Knight Robert Global Cities Residential Index, the Chinese city of Shenzen saw the greatest year-over-year home price spike during the second quarter, with a staggering 47.4 percent increase. Chinese cities made up six of the top 10 major global markets experiencing oversized home price increases, while Canada’s Vancouver metro area was the sole North American market in this ultra-expensive configuration, ranking fifth worldwide with a 23.4 percent home price upswing. The highest ranking U.S. city was Portland, in twentieth place recording a relatively anemic 12.6 percent year-over-year increase, with Seattle trailing in twenty-fifth at 11.1 percent and Denver in thirty-eighth at 9.3 percent.
“Of the 150 cities tracked, 114 recorded positive annual price growth and 31 cities saw price growth exceed double digits,” said Kate Everett-Allen, a partner in the international residential research team at Knight Frank, who noted that China’s dramatic economic environment is driving this extraordinary demand for housing. “You’ve got a large amount of wealth being created in China by a burgeoning middle class, [and] there is still a strong demand fueling price growth.”