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MoneyRisks Are Receding in Canada’s Housing Market, Agency Says

07:05  07 may  2019
07:05  07 may  2019 Source:   msn.com

Low rates to underpin, not revive, Canada's housing market: Reuters poll

Low rates to underpin, not revive, Canada's housing market: Reuters poll Low rates to underpin, not revive, Canada's housing market: Reuters poll

Canada Mortgage and Housing Corp. cited evidence of easing price acceleration for the country as a whole, with prices in Toronto and Vancouver After being rated “high” for 10-straight quarters, the overall degree of vulnerability for Canada has changed to “moderate,” the agency said in the report.

Vancouver housing market not even among top 5 in Canada anymore: Canada ' s housing markets not as vulnerable as prices fall more than 5 The federal housing agency lowered its assessment of the overall vulnerabilities in the national market to “moderate,” from “high,” according to a report

Risks Are Receding in Canada’s Housing Market, Agency Says© Bloomberg Stacks of bricks sit in front of homes under construction in East Gwillimbury, Ontario, Canada, on Friday, Nov. 2, 2018. STCA Canada is scheduled to release new housing price figures on Dec. 13.

Recent rule changes by Canadian policy makers, including tightened mortgage lending, appear to be bringing the country’s real estate market more into balance.

The federal housing agency lowered its assessment of the overall vulnerabilities in the national market to “moderate,” from “high,” according to a report Thursday from Ottawa. Canada Mortgage and Housing Corp. cited evidence of easing price acceleration for the country as a whole, with prices in Toronto and Vancouver moving closer to levels supported by fundamentals.

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Canada 300,000 Homes Short Because Students Ignored In Statistics: CIBC MONTREAL — If policymakers want to help solve Canada’s housing affordability crisis, they should start by building rental housing near colleges and universities. That’s the implication of a new study from CIBC, which estimates that Canada has a shortage of about 300,000 housing units because of the way it counts — or doesn’t count — students. In Canada’s census, a student who lives away from home during the school year but returns to their parents’ home in summers is counted as living with their parents. That census data is used by Canada Mortgage and Housing Corp.

Canada ' s housing market has grown riskier over the past two years, with risk levels similar to those seen during the financial crisis a decade ago, the International In its latest Global Financial Stability Report, the Washington-based agency dedicated to global financial co-operation said the U.S. and

Risks are receding in Canada ’ s housing market , agency says . Toronto housing market starts buying season with a bang, sales up 17%. Click here for a free home evaluation. How is the market ? Click here to get report of recently sold properties. GTA Commercial REALTORS® Report

After being rated “high” for 10-straight quarters, the overall degree of vulnerability for Canada has changed to “moderate,” the agency said in the report.

Home sales and prices have slowed in Canada after governments at various levels took steps to mitigate the risks of a crash. The federal banking regulator imposed stress tests on new mortgage lending last year, a measure that has been particularly controversial.

Canadian Imperial Bank of Commerce economists, along with realtor groups and home builders, have argued the rules should be eased, saying they are punishing first-time buyers. Economists at Toronto-Dominion Bank said the rules have contributed to bringing down housing activity to a more sustainable level, but there is “scope to tweak the guidelines” if housing undershoots expectations.

Mansions Languish, Condos Pop as Toronto Homes Sales Face Spring Test

Mansions Languish, Condos Pop as Toronto Homes Sales Face Spring Test A one-bedroom condo plus den listed at C$648,000 ($483,600) in Toronto’s east end has been sitting on the market for weeks. A similar unit in the same building priced C$69,000 cheaper ended up selling way over asking. Whether it’s an apartment in a glitzy new skyscraper or a mansion in exclusive Forest Hill, pricing has become paramount as Canada’s biggest city heads into the busy spring property season. As the market stabilizes after a year of plunging sales, condos sales are a mixed bag and big detached homes are hard to shift.

Canada ’ s real estate market will likely see further correction in 2019, as fears of higher interest rates and “The days of everyone being able to have a white picket fence and a detached house of their own are rapidly receding ,” said Don McClintock, president of the Vancouver Island Real Estate Board.

It also evaluates Canada ' s housing market as a whole, including the Notably, though, in Vancouver — Canada ' s most expensive housing market — overvaluation eased from Risks Are Receding in Canada ’ s Housing Market , Agency Canada home prices go eight straight months without a rise

Bank of Canada Governor Stephen Poloz said last week that after a “huge run up in housing,” speculation is coming out of the Toronto and Vancouver housing markets, but more time may be needed for it to settle out completely.

The Real Estate Board of Greater Vancouver reported Thursday benchmark home prices fell 8.5 percent in April from a year ago while sales were down 29 percent. Toronto reports data tomorrow.

CMHC said its assessment of overvaluation in Vancouver has changed to moderate from high, and the “conditions of overheating are easing as well.” Vancouver, Toronto, Victoria, British Columbia, and Hamilton, Ontario continue to see a “high degree of vulnerability” in the overall assessment, “but house prices are moving closer to levels supported by housing market fundamentals” in those cities.

That said, CMHC flagged “evidence of overheating” in the Montreal and Moncton, New Brunswick resale markets. Also, vulnerability remains “moderate” for the western cities of Edmonton, Calgary, Saskatoon, Regina and Winnipeg due to “evidence of overbuilding” in these cities.

The report is based on data through the end of 2018.

(Corrects fifth paragraph to clarify Toronto-Dominion Bank’s position on stress tests.)

To contact the reporter on this story: Chris Fournier in Ottawa at [email protected]

To contact the editors responsible for this story: David Scanlan at [email protected], Jacqueline Thorpe

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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