VANCOUVER — Swiss bank UBS says Vancouver faces the greatest risk of experiencing a sudden downward correction in home prices when compared to 17 other cities around the world.
Researchers at the bank have written a report that says the city's house prices have risen to levels unjustified by local economic factors.
The report says Vancouver's risk of a housing bubble is greater than other high-priced housing markets such as London, Hong Kong and Sydney, Australia.
The research was compiled before a 15 per cent tax was introduced last month for foreign buyers of homes in Metro Vancouver.
Last week, the British Columbia government said property transactions involving foreign buyers dropped to 60 between Aug. 2 and Aug. 31 after hitting 1,974 from June 10 to Aug. 1.
