Nov. 26--Home prices in Israel showed the fastest rise in the third quarter of 2009 in global markets tracked by "Global Property Guide". Israeli home prices were 10.15 percent higher in the third quarter than in the corresponding quarter of 2008, and 0.68 percent higher than in the second quarter.

Israel's housing market has been the best performer for two quarters in a row. House prices rose 10.2 percent in January-September 2009, an acceleration from 8.4 percent increase in the first half of the year. Home prices in Israel are rebounding after they fell by 3.79 percent between the third quarter of 2007 and the third quarter of 2008.

Home price rises in Israel were more than double the second-best performing market, Australia, where prices were 4.91 percent higher in the third quarter than in the corresponding quarter.

During the third quarter, home prices in leading economies continue to recover from the global crisis, although many housing markets are still in distress, says "Global Property Guide". Home prices in 17 of the 27 countries that have published third quarter data fell in January-September.

The "Global Property Guide's" statistical presentation uses price-changes after inflation, which it claims gives a more realistic picture than the nominal figures cited by real estate agents. The magazine says, "The fact that housing markets are recovering in inflation-adjusted terms is significant, as the dramatic declines of housing busts are typically followed by a period in which house prices are static in nominal terms, but decline in real (inflation-adjusted) terms."

Latvia was the worst performing housing market, with prices down 59.7 percent in the third quarter compared with the corresponding quarter. Prices in the United Arab Emirates were down 48.05 percent (after rising 61.5 percent between the third quarter of 2007 and the third quarter of 2008). Home prices in the US, according to Case-Schiller, were down 7.45 percent, and were down 2.8 percent according to the Federal Housing Finance Agency (FHFA).

The top two best performing housing markets in the third quarter compared with the second quarter were Singapore, up 14.3 percent, and Hong Kong, up 11.1 percent. Home prices rose by 3.4 percent in the UK, 0.59 percent in Germany, and 0.17 percent in Canada. Home prices in the US rose by 1.19 percent according to Case-Schiller, but fell by 0.45 percent according to the FHFA.

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