Overbuilding on the rise in certain Canadian real estate markets: CMHC

Canada Mortgage and Housing Corporation says evidence of overbuilding has grown in real estate markets in Calgary, Saskatoon, Regina and Ottawa.

TORONTO — Canada Mortgage and Housing Corporation says evidence of overbuilding has grown in real estate markets in Calgary, Saskatoon, Regina and Ottawa.

The housing agency says higher vacancy rates and an increase in the inventory of new, unsold units are responsible for the rise in overbuilding.

CMHC defines overbuilding as an indication that supply in the housing market significantly outpaces demand.

CMHC’s house price analysis and assessment aims to identify potential risks in Canadian real estate by evaluating economic, financial and demographic factors in a total of 15 housing markets.

The agency uses four factors to identify the level of risk present in regional housing markets: overheating of demand, accelerating price growth, overvaluation of prices and overbuilding.

Overall, CMHC says it has found strong evidence of problematic conditions in Toronto, Calgary, Saskatoon and Regina. In Toronto, CMHC says it has found evidence of price acceleration and overvaluation and is also looking at the possibility that overbuilding could become an issue, particularly in the condo market.

“As more centres are now showing problematic overbuilding conditions, inventory management is becoming more important,” Bob Dugan, CMHC’s chief economist, said in a statement.

Just Posted

Trans Mountain CEO says shovels could be in ground on pipeline by September

CALGARY — The CEO of the Crown corporation building the Trans Mountain… Continue reading

Alberta government looking to speed up job accreditation for foreign workers

EDMONTON — The Alberta government wants to ensure that foreign-trained professionals and… Continue reading

Tax credits, penalizing big polluters, key to Conservative climate plan

OTTAWA — Conservative Leader Andrew Scheer says his climate plan will be… Continue reading

Trudeau promises to legislate implementation of UNDRIP if re-elected

OTTAWA — Prime Minister Justin Trudeau is promising that a re-elected Liberal… Continue reading

Make passports free to ease new no-fly list measures, federal panel suggests

Ottawa should consider making passports free to everyone for a year to… Continue reading

WATCH: New RDC president has three decades of experience working at colleges and universities

Peter Nunoda says he’s ‘excited’ to help transition the college into a university

Trans Mountain CEO says shovels could be in ground on pipeline by September

CALGARY — The CEO of the Crown corporation building the Trans Mountain… Continue reading

Alberta government looking to speed up job accreditation for foreign workers

EDMONTON — The Alberta government wants to ensure that foreign-trained professionals and… Continue reading

Tax credits, penalizing big polluters, key to Conservative climate plan

OTTAWA — Conservative Leader Andrew Scheer says his climate plan will be… Continue reading

Trudeau promises to legislate implementation of UNDRIP if re-elected

OTTAWA — Prime Minister Justin Trudeau is promising that a re-elected Liberal… Continue reading

Make passports free to ease new no-fly list measures, federal panel suggests

Ottawa should consider making passports free to everyone for a year to… Continue reading

Canada resettled more refugees than any other country in 2018, UN says

OTTAWA — As the number of displaced people worldwide reaches modern highs,… Continue reading

Trudeau to meet Pelosi, McConnell, as well as Trump in Washington

WASHINGTON — Prime Minister Justin Trudeau will meet Nancy Pelosi, President Donald… Continue reading

Acts of kindness emerge at chaotic Raptors rally derailed by shooting

TORONTO — When gunshots sparked panic and chaos at a massive outdoor… Continue reading

Most Read