- A report by UBS analyzed price growth in 25 major urban housing markets around the world from the second quarter of 2019 through the second quarter of 2020.
- Of those markets, seven are in bubble risk territory, meaning they are at risk of a housing-market crash.
- The top three are Munich, Frankfurt, and Toronto.
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On a global scale, the housing market has shown strength during the coronavirus pandemic, despite the economic downturn.
A recent report by UBS identified three factors for its resilience.
First, as home prices are a backward-looking indicator of the economy, UBS said they react with a delay to economic downturns. The number of transactions declined in most cities in the second quarter of 2020 compared with the previous year, “complicating price formation and reducing the validity of observed prices.”
Second, the majority of prospective homebuyers didn’t suffer direct income