About Me

My photo
GTA, Ontario, Canada
A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!

Tuesday, November 3, 2015

Is Vancouver overvalued or not?

The question as to whether the Vancouver housing market is overvalued is still up for debate apparently, with an international report contradicting Canada Mortgage and Housing Corporation’s assertion that the city’s market is at low risk of a correction.

Vancouver’s “significantly overvalued” housing market is among the most bubbly in the world, according to the UBS Global Real Estate Bubble Index, which launched this week. The report puts Vancouver at No. 4 behind London and Hong Kong, and just a shade behind Sydney.

“Bubble risk is most distinct in London and Hong Kong,” said the study, which looked at price-to-income and price-to-rent ratios and a handful of other measures. “Deviations from the long-term norm point to significantly overvalued housing markets in Sydney, Vancouver, San Francisco and Amsterdam.”

According to this study, Vancouver prices in 2015 were up by 25 per cent since 2006, suggesting that valuations “look very stretched,” although the “dynamic has slowed significantly of late.”
The CMHC’s Housing Market Assessment (HMA) offered a slightly more optimistic view for property investors.

“The HMA points to weak evidence of overall problematic conditions in Vancouver, though we are now detecting moderate evidence of overvaluation,” CMHC said in its report. “However, overheating, acceleration in house prices and overbuilding are not a concern in this market.”

USB pointed to strong Asian demand as the reason for the rise in Vancouver prices, while adding that rents and incomes registered only single-digit growth rates in the same period. “The recent plunge in commodity prices and unpredictable foreign demand cloud the current outlook,” stated the report.

CREW

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)