While we wait for the February real estate data to come in, here is the latest UBS update to their real estate bubble index.
Not many surprises; we have been seeing these cities appear on the most expensive lists for sometime now.
My Demographia file has been tracking these cities since 2005.
Vancouver, whose house prices accelerated to a double-digit rate relative to last year, has a ballooning index score. Higher stamp duties for foreign investors proved futile in braking its boom. By contrast, Toronto’s price dynamics have slowed considerably and its index score declined somewhat from last year’s. In both cities, valuations have trended upward since the late 1990s. Neither the financial crisis nor weakening commodity prices has dragged them down. But rising rates, stricter market regulations or an economic downturn could turn the lights out on the party given the high valuations and strained affordability.
2018 UBS Global Real Estate Bubble Index PDF