The Canada Mortgage and Housing Corporation (CMHC) issued a “red” warning Wednesday saying there is strong evidence that many Canadian housing markets are overvalued.
The CMHC warned in its quarterly Housing Market Assessment that red-hot real estate prices have spread beyond Vancouver and Toronto, which have seen skyrocketing housing prices.
“Price growth remains elevated in Vancouver and continues to strengthen in Victoria, Abbotsford, and Kelowna,” the CMHC said.
However, the agency projected that housing starts, sales and prices should cool beginning in 2017 before stabilizing in 2018.
Four cities were given a red warning:
- Quebec City
Five other cities were given a yellow warning, meaning there is moderate evidence of overvalution:
Chris Messecar of Exit Realty First North will be joining me later this afternoon to break this down and explain it further-and to tell us what it means for the Barrie housing market.