The Swiss bank UBS made did an assessment, measuring the threat faced by 18 main cities putting Vancouver at the top of the 2015 leader London, UK. In the year 2015, Vancouver was valued for more than its worth, they are now mostly exposed to the possibility of a housing bubble this year.
The report caution; “Over the last two years, the housing market has gone into overdrive due to strong demand for local properties among foreign investors and a loose monetary policy. Currently, house prices in Vancouver seem clearly out of step with economic fundamentals and are in bubble risk territory.”
The lender mentioned that the little interest rates, as well as the investors from outside the country, has put into the increasing real estate market in Vancouver. Other cities like Hong Kong, Sydney, Stockholm, and Munich are also thought to be part of the bubble zone.
The city of New York is thought to be stable, while Chicago is quite underestimated. The only other North America city that will likely face some problems although it’s overvalued fairly than the chances of a housing bubble is San Francisco.