At No. 7, at least you can feel relieved that the U.S. isn't dead last. That distinction goes to Ireland. Also among the losers are Lithuania, Ukraine, Croatia, Dubai and Greece.
Price growth was led by Asia at 7.5%, the report says. The weakest area was North America, where there was no change from the prior year.
So where is housing hot? According to the report, Hong Kong, Latvia and Israel.
Liam Bailey, Knight Frank's head of residential research, says that although it is likely Asian markets will escape a price crash, in Europe and the U.S., low interest rates are "critical to the ongoing security of the market." Recent talk of rising rates in the U.K. are "enough to cause panic among housing-market commentators," Bailey said.
So where is the big money headed? In another Knight Frank study
released today, Mumbai, India; Shanghai; and Sao Paolo, Brazil. New York and London will also continue to be economic hubs, the report predicted. Luxury property growth saw a 21% rise, but London and New York weren't far behind at 10% and 13% respectively.
If you have money to burn, Monaco is the most expensive location in the world.
The wealth report says political instability will increasingly be a factor, and that could give more of a boost to London and New York.
Bailey's summary is humbling: "Outside of the luxury markets in the global city hubs, it is difficult to see what could bring about a rapid improvement in the housing markets of the developed countries."
Makes you wonder if you should be saying, "Pack your bags honey, we're heading to Latvia!"
Rebecca Roberts began her career as an online editor in 1996 with the launch of MSNBC and has worked as the managing editor of Netscape and senior editor of Yahoo! Real Estate. She's currently both a renter and a landlord.