Some people are freaking out about a housing bubble in Vancouver.
Tsur Sommerville of the UBC CUER Sauder school of business says there is no bubble and I bet the developers who sponsor the school would agree.
So it’s unanimous, no bubble.
But if you want a giggle check the spelling on the URL.. Sponsers? well I guess they study economics, not spellonomics.
Anyways, Tsur says no bubble in Vancouver.
“You can’t burst a bubble that wasn’t there,” said Somerville. “But you can have prices above where they should be and it not be a bubble.
“A bubble isn’t just defined by high prices,” he said.
Somerville identified a housing “bubble” as conditions akin to what was happening in 2007.
“It didn’t matter what the condo looked like or what it’s going to look like or who was building it, people were lined up around the block and snapping it up,” he said. “They were saying, ‘I’ll take 12, please.’ That’s more of a bubble environment.”
So there you have it. We had a ‘bubble environment’ in 2007, but right now there is no bubble because very little is selling so we’re safe from a bubble that could burst. We have prices that are above what they should be, but no bubble.
Read the full article in The Province.