It’s back! The European bank UBS is out with their annual world housing report and as usual Vancouver is one of there top 10 most overvalued markets. This year Vancouver comes in at #4. Last year we were #2. UBS and many others has been calling for a correction in Vancouver RE for about 8 or 10 years years now. The market has since gone up well over 100% since... One of these days they're going to get it right. Part of their miscalculation is that they continue to look at our market based on fundamentals. i.e. what the average persons earns vs what it costs to buy a home. When you use that metric of course Vancouver looks like it’s in a bubble! Somebody needs to tell them that Vancouver unhinged from fundamentals a decade ago. Vancouver is an equity driven market as well as a magnet for foreign buyers, however most of the foreign buyers have their PRS or Canadian passport. If I was able to ask the people at UBS 1 question it would be this: "If the 100% increase in home prices over the past 8-10 years was never a result of fundamentals then why would any correction be?"