Relaxed new monetary policy has stimulated global stock markets. The response of property markets has varied. The housing boom before the financial crisis was global, while the recovery after the bust is uneven. Prices have risen over the past year in some countries. The biggest increase has been in Hong Kong, where house prices are up by 24.5%. The biggest drop is in Spain, where prices are down by 7.7%.

Property markets are generally strong in the developing world. Prices have risen by 11.1% in South Africa. They have also been strong in two big emerging economies: Brazil (up by 12.8%) and India (10.7%). China’s house prices have increased modestly, by 3.3%.

Housing markets are known to be vulnerable to boom and bust.

Right now, Canada’s market is especially vulnerable. A large bubble now looks set to burst. Home sales in March were 15% down on a year earlier. There are few buyers. A recent poll showed that only 15% of Canadians are likely to buy a home in the next two years. This is down from 27% last year.