Vancouverites could lose $200,000 if housing bubble bursts - MoneySense

Vancouverites could lose $200,000 if housing bubble bursts

Average prices could drop if mortgage rates rise.

by

According to the Canadian Centre for Policy Alternatives, Vancouver homeowners could face massive losses if the realty market tumbles.

“All you need is a 1% increase in the mortgage rate above the two-year average in a given month and that’s what popped every single bubble in Canada [in the past], two in Vancouver and one in Toronto,” researcher David Macdonald told Business In Vancouver.

While he says a crash isn’t imminent, he thinks its bound to happen at some point.