Goldman Sachs: Australia will have a housing surplus in 2017

In a significant turnaround, Tim Toohey the Head of Macro Research at Goldman Sachs in Australia says that housing demand will cool by 2017 as migration and population growth slows. Toohey has revised his view from an estimated shortage of 140,000 homes in 2017 into a 75,000 surplus. “The birth rate is at an historic low, deaths are at historic highs and net migration is "falling fast." Instead of population growth of 1.7 -1.8 per cent a year in 2015-17, (he) estimates the growth is more likely to be 1.25 per cent a year.” (Source: AFR)