Housing ‘highly vulnerable,’ CMHC says
Canada Mortgage and Housing Corp. says the country’s housing markets remain “highly vulnerable” with evidence of moderate overvaluation and price acceleration.
Markets in Toronto, Hamilton, Vancouver, Victoria and Saskatoon are highly vulnerable, the national housing agency said in its quarterly housing market assessment on Thursday.
CMHC’s housing market assessment gauges the overall level of risk by evaluating four problematic conditions: overheating, price acceleration, overvaluation and overbuilding.
“For Canada, the housing market remains at a high degree of vulnerability,” said Bob Dugan, CMHC’s chief economist on a call with reporters.
This comes after the Canadian Real Estate Association’s latest figures showed that the number of homes sold in September climbed for the second month in a row.
Calgary and Edmonton also saw stronger overvaluation, due to rising inventory of complete and unsold homes, Dugan said, noting that vacancy rates in both cities have signalled overbuilding for several quarters.