Another day, another not-at-all-shocking report about Vancouver real estate.
The Vancouver housing market is problematic and showing signs of overvaluation, according to the latest report from the Canada Mortgage and Housing Authority.
However, in its First Quarter Housing Market Assessment for Vancouver, the CMHC says there is only moderate evidence of rising rises, and weak evidence of overheating.
The report says the overvaluation of Vancouver real estate signals that “home prices exceed levels supported by economic, demographic and financial fundamentals.”
“For this reason, home buyers should ensure that their purchases are aligned with their needs as well as the long-term market outlook,” said Chief Economist Bob Dugan in a release.
In the release, it says CMHC defines evidence of problematic conditions as imbalances which happen when overbuilding, overvaluation, overheating and price rises depart significantly from historical averages.
“Even though demand for resale homes has cooled, the supply of resale homes has remained below the five-year average level,” the CMHC’s national report said of Vancouver.
“Inventories of new homes remain low, and rental vacancy rates across the region are below
one per cent in most areas.”