CMHC Housing Market Assessment For 4th Quarter

The Canadian Mortgage and Housing Corporation (CMHC) publishes regular reports on the state of the housing market across Canada.

Click here to view the latest report, for the fourth quarter of 2018.

Highlights of this report include:

  • For Canada as a whole, house prices are overvalued and vulnerable to a market correction. However, prices have been moderating in most of the country and the conditions of overvaluation are easing.
  • In Vancouver, Victoria, Toronto and Hamilton (!), prices are significantly overvalued and there is a high degree of vulnerability to a market correction, although prices are moving closer to levels supported by housing market fundamentals.
  • The Montreal market is not presently overvalued, but is close to overheating because of a sharp tightening between supply and demand.
  • There is evidence of overbuilding in the western provinces (excluding BC) and so these markets are also vulnerable to a correction.

Overall, these data are consistent with a gradual deceleration in the Canadian housing market, with prices continuing to increase but at a slower pace and with a more even balance between buyers and sellers. Couldn’t ask for a better outlook!