Housing Crisis: The biggest risks for NZ in 2018

PHOTO: The housing market is already falling. Photo Credit: Getty.

Goldman Sachs says New Zealand’s housing market is the most over-valued among the G-10 economies and there’s a 40 percent chance it will go ‘bust’ by 2019.

A housing market bust has house prices falling 5 percent or more after adjustment for inflation.

• Auckland housing market spirals down
• Housing market slumps around New Zealand

The global finance company’s report claims “prices do appear overvalued and credit growth has been high – traditional warning signs of real house-price declines”.

There are signs the housing market is already slipping.

Last year, Auckland house prices have tumbled in the biggest fall since 2010. A new Real Estate Institute (REINZ) report shows median prices in Auckland fell by 3.2 percent year-on-year to $850,000.

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