CMHC releases Q3 2021 Housing Market Assessment

Home price acceleration, alongside continued overvaluation, as home prices further detach from fundamental factors, such as labour income, has created a high degree of vulnerability in Canada’s housing market. This according to the latest Housing Market Assessment released by Canada Mortgage and Housing Corporation (CMHC). High vulnerability at the national level is largely a reflection of problematic conditions in several local housing markets across Ontario and Eastern Canada. A high degree of vulnerability means the housing market is more vulnerable to a potential downturn, with greater consequences if the downturn were to happen.

Historically low interest rates, government supports, and the rollout of mass vaccination programs provided higher purchasing power, disposable income levels, and employment amongst Canadians in the first half of 2021, however, recent home price growth was not fully explained by these improving housing market fundamentals.

“Exceptionally strong demand and home price appreciation through the course of the pandemic may have contributed to increased expectations of continued price growth for homebuyers in several local housing markets across Ontario and Eastern Canada,” said Bob Dugan, CMHC’s chief economist. “This, in turn, may have caused more buyers to enter the market than was warranted.”

The number of home sales in Canada reached a historic high in the first quarter of 2021, with demand far outpacing the supply of available homes. Sales moderated in the second quarter of 2021, albeit to a still historically elevated level, with market overheating still detected at the national level.

There is low evidence of excess inventories in the national housing market. This means there is not an unusually high level of vacant, newly built, and unsold housing units. As well, the rental apartment vacancy rate is not significantly above normal levels.

Click here for more...

Provided by: CMHC

Coquitlam News

Canadian home prices continue to re-accelerate in September
Statistics released today by the Canadian Real Estate Association (CREA) show national home sales edged...
More...
Top 10 September 2021
I am greatful for each and everyone of my clients as their support  and trust in me has enabled me...
More...
Record-Low Supply Keeps Market Conditions Tight in September
The British Columbia Real Estate Association (BCREA) reports that a total of 9,164 residential unit sales...
More...
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.