The controversy foreign home buyer tax didn’t stop Canada’s immigration website from going down shortly after the US presidential election last week. Disappointed American residents researched what exactly is a “double-double”, where to buy the best toque, and the possibilities of jumping the proverbial ship.
With the sudden interest in America’s northern neighbour, rentseeker.ca conducted their own research. Their blog “New Data by RentSeeker Shows Cost of Housing in Canada and the U.S.“, compares the average home price across Canada and the United States of America, and the salary you would need to purchase in said area.
The most expensive city in Canada is now the world's riskiest city in housing if a sudden downward correction were to happen.
Housing prices in Vancouver are always on the rise and even during the economic crisis of 2008 Vancouver still saw growth in Real Estate values. As wages and commodity prices weakened the market continued to rise which has caused a "significant overaluation" in the market.
Over the past couple of years the Vancouver market has seen increased upward pressure due to strong offshore investors and foreign property owners. The risk comes from the fact that Vancouver Real Estate values are out of sync with current economic conditions in Canada and around the world.
Other cities also sited and being risky are: Vancouver, London, Stockholm, Sydney, Munich and Hong Kong.