Hous­ing ‘highly vul­ner­a­ble,’ CMHC says

Metro Canada (Calgary) - - YOUR ESSENTIAL DAILY NEWS - The cAnA­diAn PreSS

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.

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