A Newshub article.
New Zealand’s inflated real estate prices have seen us named the “frothiest” housing market in the world in a new report by Bloomberg Economics.
The news outlet released its latest ‘bubble ranking’ on Tuesday (NZ time), rating countries by averaging five criteria – price-to-rent ratio, price-to-income ratio, real price growth, nominal price growth and annual credit growth.
The higher the reading, the greater the risk of a correction – and unfortunately for the OECD, a correction looks likelier than ever. Bloomberg reports ratios are higher than they were in the lead-up to the 2008 global financial crisis.
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