The latest spurt of ‘bubble is bursting‘ news is showing up in the local media.
Despite ever increasing sales prices, we’re also seeing a dropping sales to listing ratio month after month.
UBC’s Tom Davidoff, an associate professor at the Sauder School of Business and a real estate analyst, says the first signs of a bubble bursting might be sales volume slowing down and inventory rising. A rising rental vacancy rate could also be indicative of the market slowing down as well as lenders becoming more cautious about issuing and underwriting mortgages.
In the last few months, all of these red flags have been appearing in the Vancouver market, aside from a growing rental vacancy rate.
At the end of May, the CEO of Scotiabank, Brian Porter, said they were “a little concerned” with housing prices in Vancouver and had been easing off their mortgage lending business because of too much risk.
Read the full article over at Global News.