Canada’s national housing agency says evidence of problematic conditions in the country’s real estate market as a whole has risen from weak to moderate, with Vancouver’s risk rating boosted to high.
In its latest report, the Canada Mortgage and Housing Corporation said that in addition to Vancouver there was also strong evidence of imbalances in Toronto, Calgary, Saskatoon and Regina.
Meanwhile, CMHC found that housing markets in Edmonton, Winnipeg, Hamilton, Montreal and Quebec have exhibited moderate evidence of imbalances.
But overall evidence of problematic conditions has decreased in Ottawa since the previous CMHC assessment.
READ MORE: Home sales down in Vancouver, says report
The agency says imbalances occur when overbuilding, overvaluation, overheating and/or price acceleration depart significantly from historical averages.
CMHC’s housing market assessment report is intended to be an early warning system to alert Canadians about problematic conditions developing in the country’s real estate markets.
It covers 15 regional markets and the national housing market as a whole.
Watch below: Global’s ongoing coverage of Canada’s real estate market