According to the most recent Housing Market Assessment (HMA) from Canada Mortgage and Housing Corporation (CMHC), evidence of problematic conditions in Canada’s housing market has escalated from weak to moderate since the previous report. In Vancouver specifically, CMHC has evidence that has caused it to raise its overall assessment of problematic conditions in the housing market from moderate to high.
CMHC defines evidence of problematic conditions as imbalances in the housing market caused by overbuilding, overvaluation, overheating and price acceleration or combinations of these issues that causes these figures to sway significantly from historical averages.
The HMA alerts Canadians to areas of concern in the housing markets of the country’s main urban centres. This most recent report found that overvaluation and overbuilding continue to be the most widespread problematic conditions observed in the 15 cities covered by the HMA. Specifically, overvaluation was detected in nine cities, while overbuilding was detected in seven.
Overall, evidence of problematic conditions has increased since CMHC’s last HMA, both across the country and in Vancouver. Strong evidence of problematic conditions have been detected in Vancouver, Toronto, Calgary, Saskatoon and Regina. In Toronto and Vancouver, problematic conditions are caused by a combination of price acceleration and overvaluation. In Calgary, Saskatoon and Regina, it is due to a combination of overvaluation and overbuilding.
Edmonton, Winnipeg, Hamilton, Montreal and Quebec are all displaying moderate evidence of problematic conditions. Evidence of overvaluation has increased in Hamilton, as well as nationally, since the previous assessment. In Ottawa, however, evidence of problematic conditions has decreased since the previous assessment.
To view the complete HMA, please visit CMHC’s website.