William Lew Live-Dream-Play

Call or Text 604-862-1966 | EMAIL info@williamlew.com |

Canadian cities among those at risk of housing bubble


by Steve Randall28 Sep 2018

Another warning has been sounded about the state of Canada’s hottest housing markets.

Toronto and Vancouver are among just 6 of the major global financial centres to be flagged as at risk of a housing bubble by wealth manager UBS.

The bubble risk in the two Canadian cities are considered the riskiest in North America and rank third and fourth below Hong Kong and Munich, beating Amsterdam and London.

Values in Toronto went down slightly in the UBS Global Real Estate Bubble Index 2018 while those in Vancouver increased.

UBS Global Wealth Management’s chief investment officer Mark Haefele says that conditions are different from before the last financial crisis as there is no global evidence of simultaneous excesses in lending and construction.

Outstanding mortgage volumes are growing half as fast as in the run-up to the financial crisis, limiting economic damage from any price correction.

"Nevertheless, investors should remain selective within housing markets in bubble risk territory such as Hong Kong, Toronto, and London," he warns.

US financial centres overvalued but no bubble risk
Three cities south of the border – San Francisco, Los Angeles, and New York - are considered overvalued but not at risk of a housing bubble.

Boston is considered fairly valued while Chicago is deemed to be undervalued.

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.