Posthaste: Canada among countries most at risk of housing crash spiralling into a bigger crisis, say these economists

The steep decline of housing markets, not just in Canada, but in advanced economies around the world is starting to raise red flags among economists.

Oxford Economics in a recent report warns that the global risks of housing market crashes spiralling into banking crises are now much higher than historic norms.

Using a banking sector risk tool that measures 35 macroeconomic and financial indicators, Oxford suggests that up to 16 per cent of major economies have an 18 to 20 per cent chance of suffering a housing crisis within the next three to five years, compared to a historic average of just 2 per cent.