New Zealand homes are overvalued by 25 per cent and the country is one of nine under threat of a housing bubble burst, says the Economist magazine in a report titled “House of Horrors.”
The bursting of the global housing bubble is only halfway through, says the Economist, and next in line to hear the pop will be New Zealand, Australia, Belgium, Canada, France, Britain, the Netherlands, Spain and Sweden.
It described the nine countries as being at the same stage as the United States towards the peak of its housing bubble. And we know how that ended up.
Here’s the Economist’s summary sheet:
Which highlights two things:
- Renters are getting a much better deal than landlords; and
- The Economist’s figures on incomes to home-prices for NZ is very different to those found by Demographia in their annual reports…