6 global cities that could be in housing bubble

Vancouver’s housing market is the most at risk, according to The UBS Global Real Estate Bubble Index, due to skyrocketing home prices and strong buyer demand. Low interest rates are a big contributor to inflating the potential bubbles.

Home prices in the most at-risk cities have jumped by nearly 50% on average since 2011. At other major cities, prices have increased by less than 15%. In Vancouver, prices have risen more than 25% since the end of 2014.

London is also in the bubble zone with prices being 15% higher than where they were at the 2007 peak, despite the fact that incomes are now 10% lower.

Hong Kong isn’t quite as hot as it has been, but it’s still inflating. Incomes are flat, which has created affordability issues.

While no U.S. cities made the bubble-risk list, some markets there are also heating up. For example, UBS deemed San Francisco’s housing market overvalued, as prices have risen 50% since 2011. Wages have also been strong in the area, increasing faster than the national rate, so affordability is still an issue.

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