Vancouver housing market may see price correction
Posted June 7, 2011 9:58 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – An economist says the Vancouver housing market is at an increased risk of a price correction. Sal Guatieri with BMO Capital Markets says “current steep valuations could prove unsustainable if foreign investment ebbs or interest rates climb.”
He points out that “four corrections in the past three decades saw declines averaging 21 per cent.” But Guatieri also says “if interest rates stay low and wealthy immigrants continue to pour into the city, prices could stabilize sooner than in past downturns.”
He adds “the average priced home in Vancouver is now an astounding 11.2 times family income, more than double the decade-earlier ratio and the current national figure.”
Guatieri explains Vancouver’s 10-year percentage gain is more than double that of Toronto’s.
