A story from CBC speaks about a BMO report that shows the housing prices in Canada is severly overvalued. In Vancouver, home prices have risen 20 percent in the past year to January. I’m not sure about other cities but I think Vancouver will be fine. The strength of Vancouver housing market lies in new money coming in from mainland Chinese buyers. These buyers need a way to get money out of China and one of the best way is to invest in real estate. Vancouver’s relative close distance to China and democratic freedoms are magnets to the Chinese money.
It also doesn’t hurt that Vancouver has once again rated #1 on the list of the world’s most livable city.