Lending institutions and banks across the globe are still reeling after the housing collapse in 2006-2007. In the UK, it has been no different. The collapse caused banks that lent on homes to drain their balance sheets in search of stability.

Over the past couple of years, global housing markets have experienced a recovery of sorts, although it seems the momentum for many is starting to come to a halt.

In the U.S. for example, Alan Greenspan feels that if housing prices start to decline, the U.S. economy would start to contract.

Steven Ricchiuto, chief economist at Mizuho Securities, compared the housing market functionability to a healthy economy by saying: "The housing market shows both the availability of credit as well as consumer confidence, and so it is a broad indicator of economic health."

Prices around the world started falling middle of 2006, led by the decline in the US markets. Following their lead, by 2008, almost every property market in the world was in decline. On average, the world housing market declined by about 17 per cent, but has since bounced back about 10 per cent.

Even after a government tax credit program, the US is well below its peak level, and so are several other countries. Oversupply continues to be the problem in the US. It continues to put pressure on houses in a negative way.

Since economic stimulus and low interest rates have been introduced, most countries have been on a modest upward swing.

Due to the emergency economic stimulus though, Liam Bailey, head of research at Knight Frank cautions: "This time it is not real-economy growth that has supported values. The bounce has been an unintended consequence of the emergency economic stimulus, and could suggest that the economic picture is healthier than it really is."