By The Canadian Press
TORONTO — A new report from CMHC says Regina and Winnipeg are at high risk of a housing correction due to overvalued home prices and a glut of supply.
The study says the majority of other housing estate markets across the country are relatively stable.
Toronto is identified as facing a moderate risk, as the number of condo units under construction is near historical highs and price growth is outpacing growth in personal disposable income.
A risk of a correction is moderate in Montreal as well, as demand from first-time buyers is waning while the number of condo units currently under construction is near an all-time high.
Meanwhile Vancouver, one of the country’s hottest real estate markets, is rated as low risk. Despite the fact that house prices in Vancouver are growing rapidly, demand is supported by the city’s growing population and increases in personal disposable income.
CMHC’s House Price Analysis and Assessment aims to identify potential risks in Canadian real estate by evaluating economic, financial and demographic factors.