Canada’s hot housing markets are running out of steam, according to Sun Life Global Investments.

In an interview Wednesday with BNN, Sun Life’s Chief Investment Officer Sadiq Adatia said that there is a housing bubble in Toronto and Vancouver and that it’s already starting to burst.

“I think if you look at Vancouver, we’ve already seen the bubble burst there,” Adatia told BNN.

“A lot of people think it’s just the foreign players and that tax that came through, but it actually started before the tax actually got implemented. So, what we’re seeing is probably a further extension of that downturn as result of the foreign tax.”

For Toronto, meanwhile, Adatia says the trouble still lies ahead.

“Eventually we are going to see this market kind of stop and then come off a cliff,” he said. “The longer we stay in this run-up, the bigger the downturn is going to be.”

“Toronto for many years had been an under-valued real estate market. The difference is, though, that we’ve moved up so significantly in a short amount of time,” Adatia added. “And so, what will likely happen is that we’ll start seeing selling pressure down the road, we’ll see sales coming off. Right now demand is still there but demand is slowly coming off.”