Prices easing but Canada’s housing market still ‘highly vulnerable’: CMHC

Despite an easing in prices, the Canadian housing market remains “highly vulnerable,” according to the Canadian Mortgage and Housing Corporation.

highly vulnerable, CMHC, housing market, Montreal
According to the CMHC, the Montreal housing market may be “close to overheating.” Photo by Nicolae Rosu via Unsplash.

The federal agency says house prices in Toronto, Vancouver, Victoria and Hamilton are getting more in line with housing market fundamentals such as income, mortgage rates and population.

But there still remains a “high degree of overall vulnerability” in these markets.

CMHC says there continues to be overbuilding in Edmonton, Calgary, Saskatoon, Winnipeg and Regina.

Meanwhile, it called Montreal’s resale market “close to overheating” as demand outstrips supply.

The agency made the findings in its quarterly Housing Market Assessment report, which is meant to gauge the stability of the national real estate market.

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