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Wealth
+ Economics

The World’s Hottest Housing Markets Are Facing a Painful Reset

Frothy property markets are poised for double-digit price declines as consumers face mounting financial pressures.

Property prices in Sydney recorded their largest monthly decline in almost four decades in August.

Property prices in Sydney recorded their largest monthly decline in almost four decades in August.

Photographer: Brendon Thorne/Bloomberg

Around the world, soaring borrowing costs are squeezing homebuyers and property owners alike. 

From Sydney to Stockholm to Seattle, buyers are pulling back as central banks raise interest rates at the fastest pace in decades, sending house prices falling. Meanwhile, millions of people who borrowed cheaply to purchase homes during the pandemic boom face higher payments as loans reset.