BRITISH COLUMBIA

Vancouver Housing Bubble: Real Estate Values Inflated, Fitch Says

03/05/2013 06:08 EST | Updated 01/25/2014 04:01 EST

Vancouver homes are overpriced by about 26 per cent, says a report released by a major U.S. credit ratings agency.

Fitch Ratings released a report Monday stating that Greater Vancouver's housing values could drop by as much as 15 per cent over the "next several years," News1130 reported.

But home values could drop even further if interest rates go up in the next few years, especially for houses more than condos, UBC real estate expert Tsur Somerville told the radio station.

Fitch reported similar trends across the country, with overall Canadian prices overvalued by about 20 per cent, the Globe and Mail reported.

The news comes the same week that the Real Estate Board of Greater Vancouver reported February home sales were down 29.4 per cent from the previous year, and 30.4 per cent below the 10-year average.

Point Grey realtor Ken Wyder said that Vancouver's housing market is stable, but he agreed with Somerville that things could change if interest rates were to go up, the Vancouver Observer reported.

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