Victoria housing market continues at high degree of vulnerability, CMHC report says

File photo courtesy CBC.

Greater Victoria’s housing market continues to show a “high degree of vulnerability”, according to the Canadian Mortgage and Housing Corporation (CMHC).

The housing agency released its quarterly Housing Market Assessment Thursday morning, which is meant to gauge the stability of the real estate market on the national and local levels.

The CMHC report says Victoria is seeing housing prices fall more in line with market fundamentals such as income, mortgage rates and population.

But the agency finds high evidence of overvaluation for Metro Victoria in the second quarter of 2018 is still being detected.

That is also the case for overheating in the Greater Victoria market, which is found when sales greatly outpace new listings for existing homes.

Victoria’s Housing Market Assessment is one of four Canadian cities deemed to be at a high level of vulnerability, according to the Canada Mortgage and Housing Corporation. Findings of the agency’s quarterly report are based on factors that include overheating, price acceleration, overvaluation and overbuilding. Housing vulnerability remains high at the national level. Photo courtesy CMHC.

The CMHC says the market balance has improved in Victoria and although price growth continues to outpace inflation, it isn’t doing so at the rate that was indicated in previous assessments.

Other fundamental factors include the mortgage-borrowing capacity of households, required minimum down payment, and labour productivity.

The report says overall Canadian housing market remains highly vulnerable, along with Vancouver, Toronto and Hamilton.

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