Vancouver’s home prices were not affected by the recession – and despite weakening commodity prices they’re only rising higher, according to UBS.
The Swiss bank released its Global Real Estate Bubble Index on Tuesday, which ranks property markets based on their risk of “bubble” status. The report considers markets at risk of a housing bubble when their house prices have increased by almost 50 percent since 2011. Vancouver tops this index, and hot on the heels of Vancouver are London and the Swedish capital, Stockholm. The report stated that, with the exception of Milan, low interest rates in the euro zone have pushed all the European cities reviewed into bubble territory.
The report describes New York as a “fairly valued” city, with home prices 25 percent lower than they were ten years ago – but rents 50 percent higher than they were in 2006. Chicago, on the other hand, is considered undervalued, owing to a rate of house price growth far below the rest of the country.