Housing bubble is a common term used in the media today to talk about the markets in Vancouver, Toronto and some parts of Canada. Since 2008 Canada did not suffer the same perils of the housing collapse experienced in the US.
This is a recent US discussion about a housing bubble in some cities in the US that have experienced growth in prices to levels higher than 2008. These markets experience levels of speculation and in my opinion it’s speculation that creates housing bubbles. Speculation happens when the purchaser only buys the home with an expectation of a price increase. Anyone investing in the stock market fully understands that stock prices go up and down but the fundamentals of the stock is what drives the price much like the fundamentals of a functioning housing market.
When speculation fuels the market, many innocent people can get caught up in the fire that is heating up the market. Any investment advisor will tell you to look at the long term investment rates of return not the short term, the same applies to housing.
I cannot provide first hand advice on the level of speculation in the Winnipeg market but I would definitively say our level of speculation would be much lower than Vancouver and Toronto. With less speculation the levels of highs and lows will be much closer leaving less risk to home buyers.
There is risk in anything we do in life, from riding a bike, to driving your car to extreme sports like base diving. Some cities are just better suited to managing your level of risk if you are a home buyer.
UPDATE: The Globe and Mail has weighed in on how high house prices are spreading across Canada. http://www.theglobeandmail.com/real-estate/moderate-evidence-of-problems-in-canada-and-vancouver-housing-markets-cmhc/article31131589/