The Canada Mortgage and Housing Corporation says that while housing market vulnerability in Victoria remains high, it is showing signs of easing.
In its latest quarterly assessment, the CMHC still sees signs of overheating and price acceleration as well overvaluation in the capital region.
It also notes that, after climbing for fifteen consecutive quarters on year-over-year basis, the average home price dropped by 5.8% in the first quarter of 2019 compared to the same period in 2018.
“The decline in price and growth in fundamentals have helped to narrow the average estimate of overvaluation in Victoria.”
The CMHC finds the easing of housing market vulnerability is even more pronounced in Vancouver.
After being rated “high” for 12 straight quarters, it is now “moderate”, and that is mainly due to signs that price acceleration has slowed.
Across the country, the CMHC rates the national housing market’s degree of overall vulnerability at “moderate” for a second straight quarter, after 10 straight quarters at a rating of “high”.