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Canada's housing sector faces high degree of instability for eighth straight quarter, CMHC warns
July 31, 2018 | Posted by: Aaron Baxandall
Overvaluation and price acceleration in Toronto, Vancouver, Victoria, and Hamilton to blame
The Canadian Press July 26, 2018
TORONTO — The Canada Mortgage and Housing Corporation says the country’s housing sector is facing a high degree of vulnerability to market instability for the eighth straight quarter.
The Crown corporation attributes the vulnerability to overvaluation and price acceleration in Toronto, Vancouver, Victoria, and Hamilton.
It rated Edmonton, Calgary, Saskatoon, Regina as having moderate levels of vulnerability and Winnipeg, Montreal and Halifax among those with low risks.
CMHC says it is seeing signs of moderate overheating in Vancouver although price growth has been slowing over the last two quarters and detached properties in some areas are seeing declining prices.
In Toronto, CMHC says sales continued to trend lower in the first quarter of 2018, well below the threshold for overheating.
