Property is the world’s largest asset class, so any fluctuation within this market has far-reaching effects. Just consider how property values in countries like Australia, New Zealand, Canada, the U.K., and the U.S. have sent ripples throughout the global economy.

There are many factors that affect the housing market, and one is the amount of investment activity. Investors contributed to the dramatic home price growth seen in recent years. The surge in investor activity significantly impacted home prices, but the precise extent of this influence remains a subject of ongoing debate among economists.

Another factor affecting the property market is interest rates. When these rates plummeted several years ago, housing prices surged across the world. Then rates began to climb, and the substantial home price gains seen in the aforementioned countries began to correct. But home prices in the U.S. have remained above their 2020 peak, defying expectations.

That leaves the question: Why is the U.S. an outlier in the property market?

In this episode, host Maiclaire Bolton Smith sits down with CoreLogic Professional Economist Thom Malone to discuss the effect that the U.S. securitized mortgage system and investor activity has had on both the national and global property markets.

In This Episode:

2:04 – What has happened to housing prices since the pandemic and what makes 2023 such a pivotal year?

5:47 – Who are the investors that are participating in the market? Who are the mega investors and what role do they play?

8:33 – How has investor activity impacted home prices?

10:54 – Erika Stanley goes over the numbers in the housing market in The Sip.

12:05 – What is happening in the world of international housing prices?

14:16 – What are the advantages and disadvantages of the U.S.’s securitized mortgage system?

19:53 – Maiclaire Bolton Smith and Thom Malone talk about their experiences speaking with friends from their home countries about buying a house in the U.S.

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Up Next: What Is the Future of Mortgage Interest Rates in the Current Real Estate Market?

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