Falling property prices

Falling property prices are a global trend. Housing prices are being adjusted after several years of stable growth, the IMF notes. This happens in 31 of the 46 OECD countries. The leaders are Denmark, New Zealand and Sweden.

This is how housing markets respond to rising interest rates. In major economies, discount rates rose by an average of 4%. A 1% increase in real interest rates slows house price growth by about 2%.  Rising interest rates increase mortgage payments. A 1% increase in the mortgage rate increases monthly payments for the average US homebuyer by $100.