CMHC Says House Prices Are Overvalued in 11 of Canada's 15 Biggest Cities

Findings From New Report

According to the Canada's national agency, there are "problematic housing market conditions" in most of the country's major housing markets.

In CMHC's Housing Market Assessment Report, many housing markets are displaying troubling signs in four different criteria including the following:

*Overheated Home Sales *Too Many Houses Being Built *Prices Increasing Too Quickly *High Prices

In Toronto, there is strong evidence of price acceleration and overvaluation according to CMHC. "Strong evidence of problematic conditions in Winnipeg, Saskatoon, and Regina reflects detection of overvaluation and overbuilding."

Although these four cities gave CMHC the most concern overall, overvaluation was called widespread.

It was cited as either a "moderate" or a "strong" problem in 11 of the 15 cities the CMHC includes in its assessment. That's up from the eight markets the federal agency deemed as being overvalued in its last quarterly report in August.

The 11 cities that CMHC considers to have overvaluation problems include:

*Vancouver *Toronto *Calgary *Ottawa *Edmonton *Montreal *Regina *Quebec *Saskatoon *Halifax *Winnipeg

The four cities where the CMHC said overvaluation isn't a problem are Victoria, Hamilton, Moncton and St. John's.

The agency says it is also keeping a close eye on condo developments in Toronto, Montreal and Ottawa. CMHC says there are signs that developers in those markets may be building more units than people are willing to buy.

Reference: CBC News

http://www.cbc.ca/…/bu…/cmhc-housing-overvaluation-1.3294443

You Can Find the "Housing Market Report for Canada and 15 Markets" on the CMHC website at the following link:

https://www.cmhc-schl.gc.ca/…/nero/nere/2015/2015-10-29-120…