October 26, 2018 6:49 am

Local housing industry optimistic despite negative market assessment

THE CANADIAN PRESS/Graeme Roy
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The vulnerability of Winnipeg’s housing market has increased over the last few months, according to the Canada Mortgage and Housing Corporation.

Overbuilding and overvaluation are the main concerns when it comes to the city’s real estate.

READ MORE: Winnipeg’s housing market continues downward slide at 12 per cent in September

The CMHC said there’s a higher number of new units that are built but unsold.

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However, Eric Vogan with developer Qualico told Global News this is a temporary distortion in the market.

“If we can get supply and the regulatory environment predictable I don’t think little hitches like what we’re seeing right now will be repeated.”

The CEO of the Manitoba Home Builders Association, Lanny McInnes, told Global News the CMHC assessment isn’t abnormal.

“We’ve seen – certainly on the single-family side of things – starts are down about 20 percent, year to date, compared to last year. We’re not too concerned with the news that came out from CMHC.”

Elsewhere, overbuilding is a serious concern in Saskatchewan and Alberta, while Toronto and Vancouver continue to struggle with high housing prices.

Despite improvement across the country, the CMHC says Canada’s housing market remains highly vulnerable.

© 2018 Global News, a division of Corus Entertainment Inc.

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