Five key Canadian markets continue to have what Canada Mortgage and Housing Corp. calls a “high degree of market vulnerability,” according to a report out Thursday which also predicts a slowdown in construction.
CMHC, the Crown corporation which advises the government on housing policy, says Victoria, Vancouver, Saskatoon, Hamilton and Toronto all remain in what it labels the red zone for overall vulnerability based on categories that included overheating, price acceleration, overvaluation and overbuilding.
“It’s an early indication of imbalances in the housing market,” said Bob Dugan, chief economist with CMHC, about the red label which was also given to the entire country. “Not a whole lot has changed from the last quarter. For Canada, there is a degree of vulnerability.”
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