The us investment bank Goldman Sachs believe that Sweden’s and New Zealand’s housing markets are at the greatest risk for a correction.
It writes Bloomberg News, and refers to a report on the housing markets in the so-called G10 economies, the ten countries with the most traded currencies.
Goldman sees the greatest risk in the Swedish and new zealand housing markets, and see a risk of 35 to 40 per cent for a price drop of 5 per cent or more over the next two years.
The bank compared the price levels between the countries by two different dimensions, the relationship between house prices and rent, between bostadspris and household income and house prices, adjusted for inflation.
”With a cut of these dimensions see house prices in New Zealand out to be the most overvalued, followed by Canada, Sweden, Australia and Norway,” writes the bank.
Goldman Sachs points at the same time, a high immigration and population growth in both Sweden and New Zealand supports the byggefterfrågan. While writing the banker to Australia, Norway and Canada, sees the ”roofed” and indicates that housing construction takes place at a higher rate than what the demographics want.
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