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Issue link: http://digital.themreport.com/i/113472
feature Or ig i nat ion SECONDARY MARKET Going Abroad: s e c on da r y m a r k e t a na ly t ic s se r v ic i ng International Markets Make Impact While global economic trends serve as catalysts—and inhibitors—for all facets of mortgage banking, investors seeking to capitalize on international opportunities face an especially complex complement of challenges. By Andy Beth Miller W hen it comes to the global outlook for the housing market in 2013, there's good news. An emerging influx of worldwide trends comes together to create an international array of both positive and negative prototypes from which the U.S. can learn and adapt. It is precisely these mixed signals that pervaded the marketplace in 2012 that have many within the mortgage and real estate industries scratching their heads when it comes to making the big decisions in moving toward investments abroad. The good news is the housing market in the United States appears to be continuing its recovery, with the price index of houses increasing an encouraging 0.86 percent in the last quarter of 2012. Yet another sign of an upturn is the findings produced by the S&P/Case-Shiller home price index, which reveals a rise in gains as well. Further data regarding 88 | The M Report housing starts, construction activity, and sales of existing homes and real estate property all point to undeniable progress and forward motion. So what can U.S. investors learn from the international market in order to continue this success and further bolster bottom lines within our own stateside statistics? Mirroring Other Marketplaces L earning by example, the international marketplace is a prime petri dish for the states to survey, taking in the good, the bad, and the possibly from afar, in order to see what makes a truly profitable housing market tick. Taking a gander at Europe, there is a dramatic decline, as a dismal dive in house prices plagues the likes of Ireland, Greece, Spain, Romania, and the Netherlands. In direct correlation to this downward spiral is the economic depression that exists in each country. Yet in the midst of this, small sparks of strength keep international onlookers from completely counting out Europe. Among these bright beacons are Austria, Norway, Switzerland, Latvia, Thailand, Germany, and Iceland, all having climbed up the world's real estate rungs this year. Chalked up to an improved economic outlook, Dubai's housing market has rocketed toward recovery coming into 2013. Couple this upswing with a marked increase in investor confidence, and an impressive international industry leader has emerged. New Zealand also paints a positive portrait in real estate gains as its property prices continue to climb. Most experts attribute this to the rebuilding and renovation plans in Canterbury, as well as a steady cash rate of 2.5 percent being maintained within the market. Likewise, the South African market is on the mend, yet experts hesitate to hypothesize about or commit to predicting a complete recovery as the country's economy continues to lag amid an ominously dark cloud of domestic and social upheaval. Asia's progression seemed to slow in 2012, whereas before it was markedly making a comeback. Singapore, India, Malaysia, Tokyo, Japan, and Taiwan each contributed a cooling, lukewarm impact upon the industry in particular. Two welcome exceptions to the unimpressive improvements in Asia were the Philippines and Hong Kong, both expected to continue to cast light and grow in the coming year.