CMHC Housing Observer — Housing Market Assessment (HMA) Updated Results
OTTAWA — Overvaluation and overbuilding are the most commonly detected problematic conditions.
This quarterly release of the Housing Market Assessment (HMA) provides updated results regarding evidence of problematic housing market conditions in 15 Census Metropolitan Areas (CMAs).
The HMA points to overall strong evidence of problematic conditions in Calgary, Saskatoon, and Regina due to the detection of overvaluation and overbuilding. Low oil prices are impacting Alberta and Saskatchewan, weakening demographic and economic fundamentals which are in turn affecting housing markets.
In Toronto, overall strong evidence of problematic conditions reflects a combination of price acceleration and overvaluation. We are also monitoring for the potential emergence of overbuilding in Toronto due to the high number of condominium units under construction.
The evidence of overbuilding has increased since the previous assessment in Calgary, Saskatoon, Regina, and Ottawa due to either higher vacancy rates, high inventory of new and unsold units, or a combination of both. As more centres are now showing problematic overbuilding conditions, the necessity of inventory management is more pronounced.
