If you think you're overheating in this summer weather, consider Metro 麻豆传媒映画real estate for a moment.
The 麻豆传媒映画Census Metropolitan Area (CMA) housing market has been assessed as at a 鈥渉igh degree of vulnerability鈥� from various risk factors by the Canada Mortgage and Housing Corporation (CMHC), in a report released July 26.
The federal housing agency鈥檚 quarterly , which for this edition assessed market activity in 2018鈥檚 first quarter, has pegged the region as highly vulnerable for nine consecutive quarters.
As in previous editions, the latest report said that the main risk comes from overvaluation of homes, with price levels 鈥渇ar higher than the upper predicted values from price models based on demand and supply fundamental factors such as population, income, financing costs, and land supply.鈥�
Eric Bond, CMHC鈥檚 principal analyst for Metro Vancouver, said, 鈥淭ight market conditions for lower-priced properties continue to exert upward pressure on the prices of these homes, accentuating CMHC鈥檚 detection of overvaluation in the Metro 麻豆传媒映画housing market.鈥�
The quarterly Housing Market Analysis analyzes real estate markets across Canada, assessing a combination of four key risk factors: overheating, when demand for homes in the region outpaces supply; sustained acceleration in house prices; overvaluation of house prices in comparison with levels that can be supported by economic fundamentals; and overbuilding, when the inventory of available homes exceeds demand.
Despite home price growth slowing recently in many areas, the overall year-over-year price growth seen in 2018鈥檚 first quarter was enough for CMHC to flag the region as being at 鈥渕oderate鈥� risk of both overheating and price acceleration.
鈥淭he HMA framework detected moderate evidence of overheating, although price growth has been slowing considerably over the last two quarters, and has turned negative in some areas,鈥� said Bond. 鈥淒eclining prices for detached properties in some areas, particularly Vancouver鈥檚 Westside and West Vancouver, are due to high inventories that have accumulated due to sustained falling sales volumes.鈥澛�
Once again, the only area where the risk was deemed low in Metro 麻豆传媒映画was overbuilding. 鈥淒espite record-breaking new home construction over the past two years, new home inventories remain low as developers have not been able to keep up with the demand,鈥� said the report.
National picture
Despite Canada as a whole being assessed as at 鈥渕oderate risk鈥� in price acceleration and overvaluation, and at 鈥渓ow risk鈥� in overheating and overbuilding, the CMHC still said that overall聽the country鈥檚 housing market is at 鈥渉igh risk鈥� for the eighth consecutive quarter. The said that this was 鈥渄ue to price acceleration and overvaluation being detected鈥� in key housing markets.
Victoria Census Metropolitan Area (CMA) was also as at high risk overall, with the same ratings in each of the four factors as Metro Vancouver, as was Toronto CMA.
CMHC said that the report 鈥渁cts as an 鈥榚arly warning system鈥� for the country鈥檚 housing markets 鈥� an important tool supporting financial and housing market stability.鈥�
