30 per cent chance of housing crash says Goldman Sachs

There’s a 30 per cent chance of a Canadian housing bust according to a new research note from Goldman Sachs.

The bank bases its assessment on a decrease in home prices of 5 per cent or more, adjusted for inflation. It looked at G10 nations and Canada was second behind New Zealand for the most overvalued home prices.

The study says that Canada has been overbuilding homes especially in Alberta and Saskatchewan, which have since seen a downturn in market activity due to the oil slump.

Goldman Sachs also highlights the high level of household debt in Canada, and the other ‘at risk’ nations which also include Sweden, Australia and Norway.

While acknowledging that the debt is currently manageable due to low interest rates, the bank warns that it could mean trouble in the future.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?