Painted turtle pointed out this article in the Vancouver Sun: Yes, there’s a housing bubble in Canada — but only in three cities. You read that correctly. The Vancouver sun printed an article calling the Vancouver market a bubble. I hope Beelzebub has some of those left over Olympic mittens.
According to a national study released last year by Pitney Bowes Business Insight, the average household income level in Calgary topped $113,000, while the average in Edmonton exceeded $90,000.
Vancouver was well behind both Alberta cities, at $82,300. That’s about $2,000 higher than Windsor, Ont., which has some of the lowest house prices in Canada. Toronto boasted average household incomes of $101,400.
Let’s look at it another way.
When U.S. house prices got to their most extreme levels during the U.S. housing bubble, the ratio of average household income levels to average local house prices got to 10 times or more in overheated markets like Los Angeles and Phoenix.
In Vancouver, the average detached bungalow now costs roughly 11 times the typical average local household income level, based on the data above.
Read the full article at the Vancouver Sun website.