The Canada Mortgage and Housing Corporation has released its quarterly analysis of Canadian housing prices.
According to the analysis, higher risk is assessed for markets in Regina, Winnipeg and Toronto. Toronto’s risk is based on price acceleration and overvaluation, while Winnipeg’s risks are overbuilding and overvaluation. Regina has a combination of all of these risks.
“Nationally, CMHC continues to detect a modest risk of overvaluation,” said Bob Dugan, the Chief Economist for the Canada Mortgage and Housing Corporation. “However, our overall assessment of the risk of problematic conditions varies from centre to centre due to regional differences in housing markets. Imbalances in local housing markets could be resolved with further moderation in house prices or improving economic conditions.”
He continued “In the case of Toronto, strong price acceleration I n2015 reflects a larger share of sales of pricier homes. The rise in house prices have not been matched by growth in personal disposable income, giving rise to a modest risk of overvaluation.”
Low housing risk is assessed for Vancouver, with moderate risk assessed for Montreal and Quebec.