Housing markets could collapse in Canada, New Zealand and Australia.  They are 3 cautionary tales for the US.

Housing markets could collapse in Canada, New Zealand and Australia. They are 3 cautionary tales for the US.

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Local housing markets in Canada, New Zealand and Australia face downturns as prices rise, interest rates rise, affordability is unattainable and inventory is bleak. The United States shares some of these concerns as the red-hot housing market cools after two years of overdrive.

According to a research paper from multinational investment bank Goldman Sachs, each of these markets is poised for “significant house price declines” by 2023. In Canada, residents face a 6% drop in values, while the percentage is 18% and 13% respectively in New Zealand and Australia.

While US prices are expected to fall by just 3%, these countries each have unique housing problems, all of which serve as a warning sign of the icy US real estate market.

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