A red-flag for Toronto real-estate.
A global bank said the city is the only one in North America at high risk of being in a bubble.
Toronto real-estate prices have gone up and up, hitting records.
The city has been such a standout this summer, the big bank UBS says the GTA has the highest ranking on its bubble index as being most overvalued in North America.
UBS said Toronto ranks third globally on the bubble ranking, behind Munich and Frankfurt.
There were seven cities in total in the high-risk category, including Hong Kong, Amsterdam and Paris.
The Globe and Mail reports UBS defines a bubble as being a period of a substantial and sustained mispricing of homes.
While the study doesn’t predict when a bubble will burst, warning only that a change in the economy, investor sentiment or major increase in housing supply, may change the dynamic.
This is the fourth straight year the GTA has been at high risk.
Vancouver, a previous holder of the top spot in 2016, is no longer in the red zone, even though average prices are still the most expensive in the country.