Canada Raising Alarm on Housing Market
Posted on Monday, October 17, 2016, 10:30 AM, by Monica Dufour, under
Real Estate
The Canada’s
housing market may be in danger in the future.
Canada Mortgage and Housing Corp. (CMHC) will increase the risk rating in its overall assessment of the country’s housing market from “strong” to “moderate,” according to
BNN.ca.
There has been some observation about the recent spillover effects from Vancouver and Toronto.
"These factors will be reflected in our forthcoming
Housing Market Assessment on Oct. 26,” CMHC chief executive officer Evan Siddall said in an opinion column in The Globe and Mail. “They will cause us to issue our first 'red' warning for the Canadian housing market as a whole."
CMHC looks for “evidence of problematic conditions,” it rates 15 markets based on weak (green), moderate (yellow), or strong (red) risk signals.
There are four areas of concern which is overheating, price acceleration, overvaluation, and overbuilding.
In July, CMHC increased its warning from weak to moderate.
Canada’s houses prices are higher than levels consistent with personal disposable income and population growth.
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Tags : house, market, housing