OTTAWA — Canada’s housing market still shows evidence of overvaluation, particularly in and around Toronto and Vancouver, despite slowing growth in prices, the federal housing agency said on Tuesday.
With prices remaining high relative to salaries and demographics, the housing boom in Canada’s biggest cities leaves the national market vulnerable, marking the sixth consecutive quarter of concern, the Canada Mortgage and Housing Corp said. The report is based on data from September 2017 and market intelligence as of December 2017.
“While house price growth has slowed, house price levels remained high relative to underlying economic fundamentals such as income and population growth. Therefore, we continue to find strong evidence of overvaluation,” said Dana Senagama, CMHC’s principal market analyst for Toronto.