Source: See Toronto Now
According to the Huffington Post, “Toronto has risen to second place in an annual ranking of the major cities with the highest risk of a housing bubble burst, while the risk of a bubble burst in Vancouver has fallen.”
Last year, Vancouver was in fourth place but is now sitting at sixth place due to the falling house prices in the city resulting in real estate becoming less overvalued. After continuous annual growth rates over a couple of quarters Vancouver’s high valuations and unmeasurable affordability have allowed for the slightest demand shifts due to the market vulnerability.
Although, Toronto hasn’t had this type of bounce back or correction in the real estate market like Vancouver has.
UBS, a Swiss bank analyzes, ranks and researches 24 major cities and their real estate market.
UBS analysts look at various factors and indicators to measure the risk of a bubble such as the change in the ratio of house prices and rents to incomes in each city, change in the value of mortgages, the value of construction and the economy as a whole.
It seems like Toronto is getting hit with a tough real estate market as Vancouver had gone through in the past year. With technological advances in leading cities, it directly correlates with the increasing demand for housing. As a result, there is a growing number of rich people who is also driving up demand.
Source: Huffington Post