Metro Vancouver鈥檚 housing market has received a 鈥渕oderate degree of vulnerability鈥� rating, after three years of 鈥渉igh degree of vulnerability鈥� ratings, from the Canada Mortgage and Housing Corp. (CMHC).
CMHC鈥檚 HMA examines urban real estate markets across Canada, assessing a combination of four key risk factors: overvaluation of house prices in comparison with levels that can be supported by economic fundamentals; overheating, when demand for homes in the region outpaces supply; sustained acceleration in house prices; and overbuilding, when the inventory of available homes exceeds demand.
In its quarterly Housing Market Assessment (HMA), issued August 1 and examining the market in 2019鈥檚 second quarter, the federal housing agency said that price acceleration had eased sufficiently to downgrade the 麻豆传媒映画real estate market鈥檚 risk assessment. The only factor that remained at moderate risk was overvaluation of real estate, said the CMHC, while the other three factors were all at low risk.
Eric Bond, senior specialist, Market Analysis at CMHC, said of the 麻豆传媒映画market, 鈥淲hile home price growth over the past few years significantly outpaced levels supported by fundamentals, these imbalances have narrowed through growth in fundamentals and lower home prices in different segments of the resale market.鈥�
However, Greater Victoria 鈥� along with Toronto and Hamilton, Ontario 鈥� remained at high risk, according to the CMHC. Victoria鈥檚 market still showed moderate risk of overvaluation, price acceleration and overheating, said the agency, but these are showing signs of easing. 鈥淭he decline in price and growth in fundamentals have helped to narrow the average estimate of overvaluation in Victoria,鈥� wrote the report authors.
Canada鈥檚 housing market as a whole was given a 鈥渕oderate degree of vulnerability鈥� rating, but the report authors acknowledge that 鈥渞egional disparities exist.鈥�
