CMHC says Vancouver market no longer ‘highly vulnerable’ as price acceleration eases

OTTAWA — The Canada Mortgage and Housing Corp. has lowered the vulnerability rating of Vancouver’s housing market to “moderate,” marking the first change in three years as prices have eased.

The federal agency says in a report that “evidence of price acceleration” in Vancouver has eased to low, prompting a downrating after 12 consecutive quarters of being flagged as “highly vulnerable.”

CMHC says that a moderate degree of vulnerability remains at the national level, but imbalances between house prices and housing market fundamentals have narrowed over the past year while certain markets are at higher risk.

It says Toronto, Hamilton and Victoria continue to have a high degree of vulnerability, but overheating, price acceleration and overvaluation show signs of abating in all three markets.

Edmonton, Calgary, Saskatoon, Regina and Winnipeg have moderate vulnerability, but evidence of overbuilding remains.

Ottawa, Quebec City, Halifax, St. John’s, N.L., Montreal, Moncton, N.B., all have low overall vulnerability, but overheating persists in Montreal and Moncton.

The Canadian Press