Canada’s housing market remains vulnerable: CMHC report

A sign advertising available rental accommodations at a house in Calgary

A sign advertising available rental accommodations at a house in Calgary

Additionally, the CMHC report found that there is moderate overall vulnerability in Edmonton, Calgary, Saskatoon, Regina and Winnipeg, where there is moderate to high overbuilding.

"In Toronto, we've seen an easing of the pressures of overvaluation because house price growth has moderated and so the level of prices isn't increasing as quickly but fundamentals are still growing at a strong rate so there has been a narrowing of that gap between actual house prices and fundamentals", CMHC chief economist Bob Dugan said in a conference call with reporters.

"Given that there's a high level of inventory in the apartment condo market, builders have started to slow down production", said James Cuddy, a CMHC senior analyst.

Toronto and Victoria, both of which have seen high levels of overvaluation in recent quarters, had their overvaluation risk factors downgraded to moderate in the new report.

CMHC says this is the 10th quarter in a row that it has given the overall Canadian housing market a "vulnerable" assessment.

And while price growth has slowed, it is still rising.

Mnuchin: Fed's Powell May Be Invited Back to White House Again
The Federal Reserve said the two men discussed recent economic developments and the outlook for growth, employment, and inflation. The meeting followed several months of criticism by Trump of Powell, whom he hand-picked more than a year ago for the job.

"Overvaluation is still detected in all these centres but it is easing as house prices are moving closer to levels supported by housing market fundamentals, such as population, personal disposable income, and interest rates".

"Year-over-year growth in the average house price and real personal disposable income was modest in the third quarter of 2018, and was outpaced by economic and demographic factors, such as full-time employment and the young-adult population, which grew by 3.68 per cent". "In Toronto, you can have prices in line with fundamentals but that doesn't meant that affordability isn't a challenge. But there are other things going on as well with respect to fundamentals which are contributing to some of the slower demand", he said. "In the rental market, some shifting demand towards rentals has helped to absorb both purpose-built and investor-owned condominium rental units".

Cuddy is primarily talking about the rental market, where the vacancy rate decreased from 6.3% in 2017 to 3.9% previous year. "The second indicator of overbuilding - newly completed and unabsorbed units per capita - continued to remain above the critical threshold, therefore yielding moderate evidence of overbuilding".

"Nationally, overheating and overbuilding remain low". On a year-over-year basis, sales decreased slightly in the third quarter, keeping the SNLR low and reinforcing buyers' market conditions.

Despite a sharp downturn in recent months, the Vancouver housing market remained largely overvalued between the last quarter of 2018 and the first of quarter of 2019, while in Toronto it moved from high to moderate overvaluation.

The Victoria ratio in the third quarter of 2018 measured 59 per cent, well below the threshold of 80 per cent. The relatively stronger demand for objective built rentals and rental condominium units has helped move Edmonton's rental market towards more balanced conditions.

Recommended News

  • MAGA Mascot Candace Owens Is Getting Dragged To Hell For Defending Hitler

    MAGA Mascot Candace Owens Is Getting Dragged To Hell For Defending Hitler

    The 29-year-old woman went on to argue that 'The problem is that he wanted - he had dreams going outside of Germany. Everyone to look a different way. "I actually don't have any problems at all with the word nationalism", she began.
    'Veep' Final Season 7 Premiere Date - Julia Louis-Dreyfus

    'Veep' Final Season 7 Premiere Date - Julia Louis-Dreyfus

    HBO announced Friday that the seventh and final season of the hit political satire will premiere March 31. Added Mandel: "I was a crying wreck". "I was really pleased with the reaction".
    Female Genital Mutilation: 309 communities no longer interested in Nigeria

    Female Genital Mutilation: 309 communities no longer interested in Nigeria

    The Sustainable Development Goals call for the elimination of female genital mutilation by 2030. A woman with a rough blade used for FGM in Uganda.
  • USA  in direct contact with Venezuelan military, urging defections

    USA in direct contact with Venezuelan military, urging defections

    German Foreign Minister Heiko Maas also said Germany had earmarked €5 million ($5.72 million) worth of assistance for Venezuela. USAID has begun packaging pallets of foodstuffs after Bolton's announcement last week that it would send humanitarian aid.
    Amnesty accuses UAE of diverting arms to 'militias' in Yemen

    Amnesty accuses UAE of diverting arms to 'militias' in Yemen

    The US state department said it was under the process of investigating the allegations. An anonymous official from within the U.S.

    Lakers have interest in adding Carmelo Anthony

    He hopes the talk will promote an open dialogue and will attempt to speak to anybody on the team with concerns, the report said. Los Angeles has acquired forward Mike Muscala from the Clippers for Michael Beasley and Ivica Zubac , according to ESPN.
  • Love returns for Cavaliers after missing 50 games

    Love returns for Cavaliers after missing 50 games

    However, the Cavaliers went on an 18-3 run and Deng Adel's layup brought Cleveland within 80-75 with 4:48 left in the quarter. Jordan Clarkson is averaging 16.6 points and 2.3 assists while Collin Sexton is averaging 14.6 points and three rebounds.
    Women's brains appear about three years younger than men's, study finds

    Women's brains appear about three years younger than men's, study finds

    For each person, the researchers determined the fraction of sugar committed to aerobic glycolysis in various regions of the brain. Louis examining brain metabolisms found that women's brains look about three years younger than the brains of men their age.
    CHAD MICHAEL MURRAY Cast in RIVERDALE

    CHAD MICHAEL MURRAY Cast in RIVERDALE

    He's described as a "charming, handsome guru" - but those good looks might be distracting us from his sinister agenda. Chad will take on the role of Edgar Evernever, the leader of the cult-like Farm.
  • City worker infected in LA typhus outbreak

    Wesson is seeking an estimate of costs to remove all the carpeting from the buildings and replace it will alternative flooring. The California Department of Public Health first reported the flea-borne typhus outbreak in L.A.
    Pep Guardiola Swears After Learning of Benjamin Mendy's 'Hong Kong' Trip

    Pep Guardiola Swears After Learning of Benjamin Mendy's 'Hong Kong' Trip

    Pep Guardiola wasn't best pleased when he found out Benjamin Mendy was in Hong Kong, and the Frenchman has hilariously responded. Guardiola said this was because De Bruyne is still being eased back following injury: "It's quite possible [he might not start]".
    New official Anthem gameplay trailer showcases Javelin Personalization and End Game content

    New official Anthem gameplay trailer showcases Javelin Personalization and End Game content

    We discussed Anthem's Cataclysm events ( and other endgame things ) with executive producer Mark Darrah earlier this month. Strongholds are some of the highest-level fixed challenges in Anthem , and they'll put your entire squad to the test.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.