UBS published its 2022 Global Real Estate Bubble Index this week, and Toronto took the top spot. Vancouver remains…[at #6 and Miami is the top American city at #10 followed closely by Los angeles at #11] , with the bank noting all of Canada is generally frothy…
…UBS don’t state whether or not a correction is coming, but they did highlight a concern that, as interest rates climb the economy slows, and home sales fall there’s only one thing propping up the market, and that’s “The robust labor market”[and that] “With a deterioration of economic conditions, this too is at risk of faltering.”
The Canadian real estate bubble dominated the list, with two cities in the top 10 — only matched by Germany. Toronto pushed higher, to take the top spot of the world’s largest real estate bubble. Vancouver held on to sixth place, where it was found in last year’s report.
…BMO (see here) recently made a similar assessment in an interview with us. The bank’s senior economist said strong fundamentals supported the market, until the recent low rate boom hit. Home prices had surged far in excess of any fundamental support, and the bank now expects a significant correction to balance this excess.
The above article by Lorimer Wilson, Managing Editor of munKNEE.com, is an edited ([ ]), abridged […], retitled, restructured, reformatted, highlighted and grammatically corrected version of an article by Daniel Wong for the sake of brevity and clarity to ensure a fast and easy read.