Canada, Australia, Sweden & Hong Kong Have The Highest Risk Of Housing Bust

[Economy 52,845]

https://www.bnnbloomberg.ca/canada-hong-kong-among-world-s-four-riskiest-housing-markets-1.1136959

 

Canada, Australia, Sweden and Hong Kong have the highest risk in the world of a housing bust as values remain extremely elevated

 

In these 4 Nations when banks didn't fail and kept lending after 2008, their housing books actually accelerated because interest rates were dropped to stimulate economic growth adding fuel to housing market with low mortgage rates

 

In Canada's case the housing boom started in 2000 and lasted until 2017 a total of 17 years where prices rose nearly 200% in key markets. It has stayed mostly flat in 2018 after the new stress test regulations.

 

Sweden consumer debt is one of the few that is even higher than Canada's when measured in relation to income. High home prices are largely to blame but so is general consumer debt

 

Canada is the only one of the 4 where the Central bank has begun raising interest rates comsiderably now triple what it was at the low (0.5% now 1.5%, expected to rise to 1.75% next meeting)

 

Australia did not lower rates down to near 0 for as as long a period as Canada and Sweden however the valuations remain dangerously high there as well

[Economy 52,845]

My gramas house in Toronto is worth $1.4 Million. That's a big inheritance for my mom one day 

[Fatigay 21,211]

And that's why I still live at my parents'...

[RAMROD 117,040]

HK is already there tbh. Even the private parking space there are very expensive.

[Economy 52,845]

1 hour ago, RAMROD said:

HK is already there tbh. Even the private parking space there are very expensive.

They are already in a bust?