OTTAWA — Canada Mortgage and Housing Corp. says the country’s housing markets remain “highly vulnerable” with evidence of moderate overvaluation and price acceleration.Markets in Toronto, Hamilton, Vancouver, Victoria and Saskatoon are highly vulnerable, the national housing agency said in its quarterly housing market assessment on Thursday.CMHC’s housing market assessment gauges the overall level of risk by evaluating four problematic conditions: overheating, price acceleration, overvaluation and overbuilding.“For Canada, the housing market remains at a high degree of vulnerability,” said Bob Dugan, CMHC’s chief economist on a call with reporters.This comes after the Canadian Real Estate Association’s latest figures showed that the number of homes sold in September climbed for the second month in a row.Earlier this year, home sales across the country saw a slowdown, led by Toronto, after the Ontario government introduced measures aimed at cooling the market. Sales in September were down almost 12 per cent from the record set in March before Ontario announced its housing plan.CMHC noted Thursday that despite the recent easing in Toronto’s resale market, it detected moderate evidence of price acceleration with strong growth in home prices among all housing types.Vancouver’s housing market remained highly vulnerable, CMHC added, with evidence of moderate overheating and price acceleration, and strong overvaluation.Calgary and Edmonton also saw stronger overvaluation, due to rising inventory of complete and unsold homes, Dugan added, noting that vacancy rates in both cities have signalled overbuilding for several quarters.In its housing market outlook, which was also released Thursday, CMHC says that after a boost this year, housing starts are expected to decline by 2019, but remain close to the average level from the last five years.Sales in the existing-homes market are also expected to decline relative to the record level set in 2016, while price growth is expected to slow, CMHC says.“High house prices particularly for single-family homes and rising mortgage rates will bring about some cooling in the pace of housing market activity,” said Dugan.
March new car registrations up 3.1 per cent to 449,287 units on 2006Second highest March registrations ever since the twice-yearly plate changeDiesel demand up 7.8 per cent to 264,186 units in the first quarterSupermini demand remains strong, up 6.6 per cent in the first quarter ‘Growth in diesel and supermini cars shows that fuel efficiency and greener motoring are now critical concerns for buyers,’ said SMMT chief executive, Christopher Macgowan. ‘The industry has been working hard to improve its environmental profile too. CO2 from tailpipes has reduced dramatically across all bar one of the sales segments since 1997 showing a net 12 per cent reduction of CO2 across the whole market. The recent DfT “Act on CO2” consumer campaign is a welcome further step in a more integrated approach to sustainable motoring.’ DownloadClick to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)