Canada’s federal housing agency sees storm clouds on the horizon.

In a new quarterly assessment, Canada Mortgage and Housing Corporation believes housing markets across the Prairies are at high risk of correction as job losses climb in the energy sector.

”Low oil prices are impacting Alberta and Saskatchewan, weakening demographic and economic fundamentals such as migration, employment and income, which are in turn affecting housing markets.”

Overall, CMHC says the country’s housing market faces little risk of steep correction but it raises concerns with nine of the 15 major markets.

There’s ”strong evidence of problematic conditions” in Calgary where the average resale prices have dropped 2.6% with predictions they’ll fall another 3.4% this year.

Calgary had been considered at a low risk of correction in CMHC’s previous assessment last October.

Edmonton is said to face ”moderate” evidence of problems.

The agency’s reiterated its warnings about Toronto.

CMHC says soaring prices for detached homes have outstripped income and population growth, leaving the market with strong evidence of problems.

Average resale home prices in the GTA jumped almost 10% last year.