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rfmcdonaldCBC carries Dan Healing's Canadian Press article describing a recent study that came to a not-unexpected conclusion.
The rise in Vancouver's average housing prices compared with the growth in average wages, rents and other economic factors make it the most likely to experience a sudden downward correction compared with 17 other large cities around the globe, according to the UBS Global Real Estate Bubble Index released this week.
The report also warned that investors are less likely to see growth in property value in high "bubble risk" cities.
Jon Woloshin, strategist at UBS Wealth Management Americas, said the report doesn't mean Vancouver is likely to experience a home price correction like the U.S. housing crisis that contributed to the 2008-09 recession. Rather, it's meant as a cautionary signal for potential real estate investors.
"Based on the different criteria that were factored into all these major markets, as we sit here today, Vancouver on a risk-reward basis scored the lowest, which is why it's at the top," he explained.</blockquote
