The Metro Vancouver housing scene may be turning into a buyer’s market but the Canada Mortgage and Housing Corporation (CMHC) warns the region still shows signs of a “high degree” of vulnerability.
“Despite declining prices for properties in different segments of the resale market in recent quarters, home price growth over the past few years has significantly outpaced local income growth,” the federal Crown corporation stated in its latest housing market assessment, released February 7.
“A high degree of overall vulnerability is maintained for Vancouver, Victoria, Toronto and Hamilton with price acceleration and overvaluation being indicated.”
Results from the assessment are based on data available as of September 2018.
Since then the real estate market has showed signs of easing.
The Real Estate Board of Greater Vancouver revealed this week the region registered 1,103 sales in January — down 39.3% from a year earlier.
The benchmark price for all residential homes, meanwhile, dropped 4.5% year over year to $1,019,600
The CMHC said that these developments are all recent and additional evidence is needed to change its assessment.
“If current easing trends in house prices persist, overvaluation will move from high to moderate,” the report stated.