Toronto, Regina and Winnipeg at high risk of housing market correction: CMHC

A new report from the Canada Mortgage and Housing Corporation says Toronto, Regina and Winnipeg face a high risk of a housing correction due to a combination of factors including overvalued home prices.

TORONTO — A new report from the Canada Mortgage and Housing Corporation says Toronto, Regina and Winnipeg face a high risk of a housing correction due to a combination of factors including overvalued home prices.

The CMHC report says a rapid increase in home prices this year and overvaluation are responsible for the high level of risk in Toronto.

Back in April, the national housing agency had pegged Toronto as having only a moderate risk of a correction.

CMHC also says Winnipeg faces a high level of risk due to overvalued home prices and overbuilding.

In Regina, rapid price growth, overvaluation and overbuilding, especially of condo units, are responsible for the high risk rating.

CMHC says housing market risk in Vancouver, one of the country’s priciest real estate markets, is low, as none of the individual risk factors that the agency examines are present.

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

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.

“Nationally, CMHC continues to detect a modest risk of overvaluation,” Bob Dugan, CMHC’s chief economist, said in a statement.

“However, our overall assessment of the risk of problematic conditions varies from centre to centre due to regional differences in housing markets. Imbalances in local housing markets could be resolved with further moderation in house prices or improving economic conditions.”

Just Posted

Alberta energy war room must avoid online morass, preaching to choir: experts

CALGARY — Tzeporah Berman only learned of her cameo appearance at an… Continue reading

CSIS destroyed secret file on Pierre Trudeau, stunning historians

OTTAWA — Canada’s spy service destroyed a Cold War dossier on Pierre… Continue reading

Premier refuses to back down on plan to scrap 18,000 immigration applications

Quebec Premier Francois Legault is holding firm on his plan to scrap… Continue reading

Pro-pipelines rally draws crowd to City Hall

Canadian Taxpayers Federation says Canada missing out on billions in revenue

Red Deer Hospice celebrates hitting fundraising halfway mark

Red Deer Hospice Society in middle of $5.2-million expansion

4 years in, Trump fondly recalls Trump Tower campaign launch

NEW YORK — It was the escalator ride that would change history.… Continue reading

Massive protests draw apology from Hong Kong leadership

Hong Kong citizens marched for hours Sunday in a massive protest that… Continue reading

Butterfly garden keeper manages to film large tarantula shedding exoskeleton

VICTORIA — A 20-centimetre tarantula capable of killing a bird has been… Continue reading

Telegraph-Journal wins 2018 Michener Award recognizing public-service journalism

OTTAWA — The Telegraph-Journal in New Brunswick has been named the winner… Continue reading

Victorious Raptors cancel their return to Toronto after becoming NBA champs

TORONTO — Some Raptors players returned to Toronto on Saturday night for… Continue reading

How a Montreal working-class neighbourhood’s activists changed Quebec and Canada

MONTREAL — The Pointe-St-Charles neighbourhood is isolated from the rest of Montreal… Continue reading

‘He was ditched:’ La Loche victim spiralled without support, now going to prison

SASKATOON — A promising football player whose dreams of playing professionally were… Continue reading

‘I’ve fallen in love’: Paralyzed Bronco player finds passion for water sport

SASKATOON — Jacob Wassermann spent most of his life on the ice… Continue reading

Most Read