The Canada Mortgage and Housing Corporation’s latest market assessment lowers the vulnerability rating of Vancouver’s housing market from “moderate” to “low”.
NS Result, released Tuesday, shows the city is headed in the opposite direction of the nationwide housing sector, with its vulnerability rating rising from “moderate” to a “high degree” of vulnerability.
The corporation’s chief economist, Bob Dugan, suggested that the COVID-19 pandemic may have played a role.
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“Extraordinarily strong demand and rising home prices during the pandemic may have contributed to the continued price growth expectations for homebuyers in many local housing markets in Ontario and eastern Canada,” he said.
“This, in turn, may have warranted more buyers to enter the market.”
Home sales numbers in Canada hit a historic high in the first quarter of 2021, the corporation reports, a slightly cooler second quarter, but still at a historically high level.
The third quarter assessment said there is little evidence of excess inventory across the country.
In Vancouver, the corporation said price increases have “settled down” along with the pace of housing sales. Owners list their homes in “larger numbers than usual,” reducing competition among buyers.
Absent from the annual assessment, however, is the question of household affordability as it relates to household income.
Market vulnerability is assessed on the basis of disparity between market vacancy rates, price movements, the level of demand relative to available supply, and housing prices from a level commensurate with labor income, population, interest rates, and other factors. Is.
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In valuation, the Greater Toronto area remained at a high level of market vulnerability. Montreal went from medium to high, Ottawa’s market maintained its high vulnerability rating, and so did Halifax and Moncton, NB.
Victoria, Calgary and Edmonton were all given moderate vulnerability rates, while Regina, Winnipeg and the rest of Quebec all had low levels of market vulnerability.