Is the grass greener over the pond?

We all know that the United States is suffering financially at the moment, largely as a result of the credit boom of the mid-2000s, the consequences of which are now hitting us hard.

We are living through the toughest economic conditions in recent history, with unemployment rising, wages static and the cost of living soaring. Is it the same for other countries though?

The overall impression is yes. Throughout the world generally, the housing market is struggling and forecasters predict it will take until around 2014 for the situation to improve significantly.

This has huge implications for us all and the US, along with the UK and other European countries, is experiencing record numbers of bankruptcies and foreclosures.

If you are thinking of buying or moving at home or abroad, it could be a good time to purchase, as prices are low. Use the mortgage calculator at money supermarket to check out your individual financial situation.

Our closest ally, the UK, has been suffering with a difficult economy, although their housing market seems to be generally a little healthier due to certain factors.

According to the official body of the Land Registry of England and Wales, in 2010 the average house price was £228,095. In the US for the same period, the average house price was $272,900.

Using a currency converter, the average price of a house in the UK in American money is $360,002, which is a difference of $90,000 more than the American equivalent.

However, the price of land in the UK is greater than in the US because of the size difference. The UK only covers 94,526 square miles whereas the US covers 3.79 million square miles. There is quite a difference!

Closer to home, our northern neighbors are experiencing steady sales progress. The Canadian Real Estate Association (CREA) states that they are seeing year on year growth within the sector.

Actual house sales rose almost 16% this year in Canada, with major urban areas such as Ottawa and Toronto benefiting more than less populated areas.

The average house price rose by just under 8%, which is noteworthy in these tough economic times. Homebuyers and homeowners in Canada are benefiting from the low interest rates that have resulted from difficulties in America and Europe.

While the Bank of Canada keeps interest rates low, the housing market will benefit and so the good news from our northern neighbors looks set to continue.

In the hot oasis that is the United Arab Emirates, however, it appears the good times are not forthcoming. According to research from Citigroup, building and construction projects have been delayed or cancelled altogether.

The cost of the cancellations, as of August 2011, was a staggering $170 billion. Since the real estate bust of 2008, house prices in Dubai have fallen an incredible 60 percent.

Other Gulf States, however, show more promise, with Qatar putting $2 billion into construction projects since July and Kuwait spending $20 billion on construction projects in their early stages.

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