- UBS’s annual real estate bubble index determines overvalued global cities.
- US house prices accelerated 7% over the past year, while financing costs fell.
- UBS lists 3 reasons to worry about a bubble and 5 cities where property is overvalued.
The real estate market could be entering bubble territory as global house prices continue to rise, according to a new report by UBS.
The Swiss bank interpolated data from price, rent, and income indexes for five US cities. All five were deemed to be overvalued in terms of property prices.
“A long, lean spell for cities’ housing markets looks more and more probable,” said Claudio Saputelli and Matthias Holzhey, UBS’s heads of global and Swiss real estate, respectively. “In light of the shaky housing market fundamentals, caution is warranted.”
Saputelli and Holzhey said that three…