VANCOUVER (NEWS 1130) – The federal housing agency names Toronto, Regina and Winnipeg as likeliest to see a housing market correction, but not Vancouver.
Canada Mortgage and Housing Corporation says Vancouver is at low risk because the city has fundamentals that support the price level. It says that although the average Metro Vancouver home price is higher than the national average and that there is no overvaluation is detected.
“First-time home buyers focus on lower-priced options in suburban locales, whereas at the high end of the price spectrum, demand is supported by high net-worth residents or repeat buyers with significant equity in their homes,” says Bob Dugan, CMHC’s chief economist.
CMHC adds some centres, including Vancouver and Toronto, have “historically supported” higher prices due to factors such as “attracting a large number of migrants and/or because of relative land scarcity.”
Its risk level is based on overheated demand, accelerating price growth, overvaluation and overbuilding.