As prices have gotten silly in Vancouver they are often compared to what you can get in other cities around the world, many of them in the post-correction US.
But you don’t have to go far for an alternative to Vancouver, you can even stay in the province.
Our nearest comparable would be the smaller city of Victoria.
To that end Interest Only has put together this chart showing the variation in home prices between Vancouver and Victoria based on Teranet data. After dipping in 2005 the deviation has become rather pronounced recently. Here’s what they say about it:
What this tells us is that Average home prices in Vancouver relative to Victoria are stretched. Victoria prices are rolling over and as a result, Vancouver looks like a new 23 year high versus Victoria prices. The ratio is outside of two standard deviations relative to the 23 year average (The shaded area).
