No U.S. Cities Appear on UBS’s Bubble Risk Index; NYC Declared “Fairly Valued”

By Jordan • October 2nd, 2017

With prices continuing to climb in major U.S. cities, it is inevitable to wonder if we’re at risk of another bubble burst. Swiss bank UBS says no, and although there is no such thing as certainly when it comes to financial markets, the Swiss have a reputation of knowing what they’re talking about on the subject. In its annual “bubble list” index released this week, UBS declared that, even though New York is “one of the most expensive markets in the world” it is still “fairly valued.” Prices have climbed 10% since 2013, a healthy increase for investors while still not prohibitive for buyers.

Prices in LA, on the other hand, have climbed 45% since 2012, and San Francisco real estate prices have increased 65% since 2011–which is 15% more than the average city on UBS’s bubble list, but the bank proclaims these markets to be stable notwithstanding due to their strong local economies.

Source: The Real Deal


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