Most Canadian Housing Markets Overvalued, Price Growth to Slow Through 2018: CMHC Reports
(firmenpresse) - OTTAWA, ONTARIO -- (Marketwired) -- 10/26/16 -- Canada Mortgage and Housing Corporation (CMHC) is finding strong evidence of problematic conditions for Canada overall. Home prices have risen ahead of economic fundamentals such as personal disposable income and population growth, resulting in overvaluation in many Canadian housing markets. However, the combination of overvaluation and overbuilding should help slow the growth in resales and house prices and lead to a moderation in the pace of housing starts.
This analysis is the result of combined insight from two major CMHC reports published concurrently for the first time, today: the (HMA) and (HMO).
According to the HMA, Canada now shows strong evidence of problematic conditions overall due to overvaluation and price acceleration. CMHC''s last HMA report in July flagged the likelihood of seeing this evidence, by the fall. In addition, overvaluation continues to be detected in nine census metropolitan areas (CMAs) across the country and overbuilding in seven. The HMA serves as an early warning system, alerting Canadians to areas of concern developing in our housing markets, so that they may take action in a way that promotes market stability.
Meanwhile, the HMO highlights important regional differences in housing activity which will gradually dissipate over the forecast horizon. At the national level, housing starts and MLS® sales are expected to decline slightly in 2017 before stabilizing in 2018 to levels more consistent with economic fundamentals and demographic changes. The HMO is a forecasting tool which provides a range of possible outcomes to better help Canadians in their decision-making process.
Report Highlights
The complete and reports covering national, regional and census metropolitan areas (CMA) markets will be available for download through the CMHC website, shortly after noon (ET). Our analysts are also available to provide further insight into the national market as well as the 15 markets covered by the HMA and the 50 markets covered by the HMO.
This release includes .
In order to access future Market Analysis Centre publications from CMHC, please subscribe to .
As Canada''s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.
For more information, visit our or follow us on , , and .
Quotes
"We now see strong evidence of problematic conditions overall nationally. This is fuelled by overvaluation - meaning house prices remain higher than the level of personal disposable income, population growth and other fundamentals would support. This overvaluation coupled with evidence of overbuilding in some centres means that growth in house prices will slow and housing starts are expected to moderate in 2017 and 2018."
- Bob Dugan, Chief Economist, Canada Mortgage and Housing Corporation
A table is available at the following address:
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Jonathan Rotondo, Media Relations
613-748-2734
Karine Leblanc, Media Relations
613-740-5413
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Datum: 26.10.2016 - 10:00 Uhr
Sprache: Deutsch
News-ID 1466099
Anzahl Zeichen: 4550
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Commercial Real Estate
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