Hous­ing agency main­tains ‘strong’ risk for na­tional real es­tate mar­ket

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Canada Mort­gage and Hous­ing Corp. is keep­ing its over­all risk rat­ing for the na­tional hous­ing mar­ket at strong.

The fed­eral hous­ing agency says over­val­u­a­tion at the na­tional level re­mains mod­er­ate and strong ev­i­dence is seen in Toronto, Van­cou­ver, Hamil­ton and Vic­to­ria.

Toronto and Hamil­ton con­tinue to show strong ev­i­dence of over­all prob­lem­atic con­di­tions due to price ac­cel­er­a­tion, over­val­u­a­tion and over­heat­ing due to de­mand out­pac­ing supply in the rental, re­sale and new home mar­kets.

CMHC’s quar­terly re­port, which cov­ers the pe­riod be­tween April and July, comes af­ter the On­tario gov­ern­ment in­tro­duced rules aimed at cool­ing Toronto’s hous­ing mar­ket.

The re­port says the ev­i­dence of over­heat­ing in the Van­cou­ver mar­ket has in­creased from weak to mod­er­ate due to town­homes and apart­ments see­ing high de­mand.

Mean­while, ev­i­dence of over­build­ing has in­creased from six cen­tres to seven as Que­bec’s rat­ing grew from weak to mod­er­ate due to a high num­ber of rental apart­ment starts out­pac­ing de­mand. Mar­kets in the Prairies con­tinue to show mod­er­ate to strong ev­i­dence of over­build­ing.

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