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The Canadian Mortgage and Housing Corporation (Canada Mortgage and Housing Corp, or CMHC), the federal housing agency, released its third-quarter quarterly assessment report on Tuesday, which escalated vulnerability from intermediate to highly vulnerable.
CMHC attributed the escalation of vulnerability to the surge and overvaluation of housing across the country and said the shift largely reflected the intensification and continuing imbalances in several housing markets in Ontario and Canada.
“although we saw some signs of moderation in some real estate market statistics in the third quarter, when looking at the results in the second quarter,” said Bob Duggan, chief economist at CMHC. The housing market is still the strongest in history, housing market activity is very strong, price growth is still very strong, and housing prices are very high. ”
The quarterly assessment released by CMHC on Tuesday ranks Canada and 15 major cities with low, medium or high vulnerability ratings based on four factors-overheating, price acceleration, overvaluation and inventory glut.
The whole of Canada was assessed as a yellow medium risk in March, but in its latest assessment today, the CMHC lists it as a red senior vulnerability risk.
CMHC’s assessment of individual real estate markets shows that Toronto, Hamilton, Ottawa, Montreal, Monckton and Halifax are highly vulnerable in red.
If these factors become unbalanced or multiple risks increase at the same time, the agency believes that the market may be more vulnerable to problems, and homeowners may begin to struggle to pay their mortgages.