The Canada Mortgage and Housing Corporation has released what was formally known as the House Price Analysis Assessment and is now known as the Housing Market Assessment. This is an assessment of how much evidence there is of problematic housing market conditions in various markets across the country.
“The most prevalent issue detected in 11 of the 15 centres covered by the HMA is overvaluation,” said Bob Dugan, the Chief Economist for the Canada Mortgage and Housing Corporation. “The evidence of overvaluation has increased since the previous assessment in Toronto, Vancouver, Montreal, Edmonton and Saskatoon as price levels are not fully supported by economic and demographic factors. Problematic overvaluation conditions in local housing markets could be resolved by moderation in house prices and or improving economic conditions.”
The Canada Mortgage and Housing Corporation is looking at Toronto, along with Montreal and Ottawa for the possibility of the emergency of overbuilding due to high levels of condominium construction.
For the full report, you can visit the Canada Mortgage and Housing Corporation website here.