OTTAWA, ONTARIO – While conditions in Canadian housing markets are showing signs of improvement, Canada Mortgage and Housing Corporation (CMHC) Signs of problematic conditions “in its overall assessment.
On a quarterly basis, CMHC publishes the Housing Market Assessment ( HME ) report that provides Canadians with informed and objective analysis and information, based on the best available data in Canada. The EMH acts as an “early warning system” for domestic housing markets – an important tool that supports the stability of financial markets and housing markets.
The overall assessment still indicates the presence of “high signs of problematic conditions” in Canada’s housing market.
Signs of national overvaluation have declined from the previous assessment; They have gone from high to moderate. The number of centers that now show such signs has increased from eight to six.
Signs of overvaluation rose from moderate to high in Victoria because the fundamentals did not keep pace with price increases. There are also moderate signs of price acceleration and overheating in Victoria, which in turn translates into high signs of problematic conditions.
Conditions for housing prices improved in Regina, Montreal and Quebec City.
Signs of excessive construction are now detected in six centers, rather than eight.
In Moncton and St. John’s, housing supply adjusts to demand.
Toronto and Hamilton continue to show signs of accelerating prices, overvaluation and overheating. Growth in prices has intensified and demand outstrips supply in the new, resale and rental markets.
The Vancouver housing market continues to show high signs of problematic conditions due to moderate signs of price acceleration and high signs of overvaluation in the housing market.
Prairie markets continue to exhibit moderate or high signs of excessive construction.
CMHC defines the signs of “problem conditions” as imbalances in the housing market. Imbalances occur when the indicators of excessive construction, overvaluation, overheating or price acceleration – or a combination of these indicators – deviate significantly from their historical averages. For examples, please see the “Overview” section of the national report.
All HES results, across Canada and census metropolitan areas, are available on our website .
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As Canada’s housing authority, CMHC contributes to the stability of the housing market and the financial system, assists Canadians in need, and provides research and information to Canadians. Governments, consumers and the housing sector in Canada.
Source: Canada Mortgage and Housing Corporation