CMHC says housing vulnerability moderate, downgrades risk in Prairie cities to low

OTTAWA — Canada Mortgage and Housing Corp. says it has downgraded the vulnerability of several cities in the Prairies while overall Canada’s housing market remains moderately vulnerable.

The federal housing agency’s quarterly assessment leaves Victoria as the only market with an overall high degree of vulnerability.

It says Toronto and Hamilton are seeing overheating and price acceleration, but that overvaluation seems to remain low as the trend looks to still be in line with economic trends around incomes, population growth, and interest rates.

CMHC says ratings on Edmonton, Calgary, Saskatoon and Winnipeg were downgraded to low as indications of overbuilding eased, while Regina remains at moderate on overbuilding concerns.

Vancouver overvaluation remains moderate, while Ottawa, Montreal, Quebec City, Moncton, Halifax and St. John’s are rated at low vulnerability overall.

The agency says results are based on data as of the end of September, and market intelligence up to the end of December.

This report by The Canadian Press was first published Feb. 20, 2020.

The Canadian Press