Strong evidence of problematic conditions persists in real estate market: CMHC
Posted Jan 26, 2017 01:22:45 PM.
Last Updated Jan 26, 2017 01:23:24 PM.
This article is more than 5 years old.
TORONTO – Canada’s federal housing agency says strong evidence of problematic conditions continues to exist in the national housing market.
Canada Mortgage and Housing Corporation says the most prevalent issues it has observed in the 15 markets it monitors are overbuilding and overvaluation, which occurs when house prices outpace economic fundamentals such as income and population growth.
CMHC first raised its overall risk rating for the national housing market to strong last October.
It said there is strong evidence of problematic conditions in Vancouver, Victoria, Saskatoon, Regina, Toronto and Hamilton.
Edmonton, Calgary, Winnipeg, Montreal and Quebec City show moderate evidence of such conditions, the agency said.
CMHC’s housing market assessment is intended to be an early warning system to alert Canadians about problematic conditions developing in the country’s real estate markets.
