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CMHC warns that Canadian housing market is overvalued in most major cities

GARRY MARR, FINANCIAL POST 10.28.2015


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Canada’s housing market is overvalued in most major cities, with price acceleration not supported by economic and demographic fundamentals in Toronto, the largest market, the federal housing agency said on Thursday. / FINANCIAL POST
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FP1030_CMHC_HOUSING-GS / FINANCIAL POST




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Canada Mortgage and Housing Corp. says it is worried about four Canadian markets, in its quarterly housing market assessment survey.

There is “strong overall evidence of problematic conditions in Toronto, Winnipeg, Saskatoon and Regina,” the government agency says in a report out Thursday, which cites overvaluation and overbuilding.

“The most prevalent issue detected in 11 of the 15 centres covered by the HMA is overvaluation. The evidence of overvaluation has increased since the previous assessment in Toronto, Vancouver, Montréal, Edmonton, and Saskatoon as price levels are not fully supported by economic and demographic factors,” said Bob Dugan, chief economist with CMHC, in a statement.

He said the overvaluation could be fixed by lower housing prices or improved economic conditions.

In Montréal and Ottawa, the survey says there is moderate evidence of problematic market conditions due to overvaluation and rising concerns of overbuilding and singles out condominium apartments.

Toronto, Montréal and Ottawa are now being monitored for the “potential emergence” of overbuilding with the number of condominium units under construction too high.



“Inventory management is therefore necessary to make sure that these condominium units under construction do not remain unsold upon completion,” said CMHC.

In Vancouver, the Crown corporation says it is only now detecting ”moderate evidence of overvaluation” and adds that overheating, acceleration in house prices and overbuilding is not a concern for that market.

CMHC says its HMA analytical framework is designed to “assess housing market conditions by taking into consideration the economic, financial and demographic drivers of housing markets” and employs multiple indicators about housing conditions.

The next assessment report is expected to be released in the first quarter of 2016.
 
保守党十年,加拿大经济到了崩溃的边缘?

制造业完蛋,多是效率低下的结果。中国1980年以前的风景。
 
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