1 August 2019

The national market received an overall yellow level, marking the second consecutive quarter with this rating after two and a half years of a red flag. CMHC says there are a few signs of overheating, price acceleration, or overbuilding.

“Modest signals of overvaluation remain the only sign of vulnerability for Canada,” – CMHC’s chief economist Bob Dugan noted. “We can see the imbalances between real estate prices and housing market fundamentals reducing, as the prices are falling and the number of potential first-time home buyers is growing.”

Although the overall situation is quite normal, there are still certain points of concern across Canada.

CMHC gave Regina a red mark for overbuilding, while Victoria, Hamilton and Toronto’s markets received the same flag as they all showed yellow levels in every category except that one. “Nevertheless, the conditions for these factors are reporting signs of easing in those markets,” – the CMHC added.

In general, the agency believes the housing market looks better, mostly due to declining prices even in spite of growing incomes and population.