Toronto and Vancouver Housing Markets Transition from Bubbles to Overvaluation in 2023
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Vancouver and Toronto, Canada's largest real estate markets, have seen a significant shift in housing market risk, according to the latest Real Estate Bubble Index for 2023. This year's report indicates the cities are no longer in the bubble risk category; instead, they are considered "overvalued."
The report highlights that the sharp drop in housing market imbalances was not solely due to declining house prices but also a result of inflation-driven income and rental growth. Rising financing costs, driven by the increase in mortgage rates, have caused annual price growth to come to a standstill, following a sharp 10 per cent jump the previous year. Only Zurich and Tokyo remain in the housing bubble risk category.
Read the full article on: REAL ESTATE MAGAZINE
