Pursuits
Goldman Says Swedish, Kiwi Housing Markets Most at Risk of Bust
- Bank sees 35-40% chance of prices dropping in next two years
- New Zealand houses most over-valued followed by Canada, Sweden
Houses stand in the suburb of Mount Wellington in Auckland, New Zealand.
Photographer: Brendon O'Hagan/BloombergThis article is for subscribers only.
The Swedish and New Zealand housing markets are the most at risk of a correction among the so-called G-10 economies, according to Goldman Sachs.
In a report on house prices in G-10 nations -- those with the 10 most-traded currencies in the world -- Goldman finds they are most elevated in small, open economies such as Sweden and New Zealand. The investment bank said there is a 35-40 percent chance of a housing “bust” in each country over the next two years, which it defines as house prices falling five percent or more after adjustment for inflation.