Toronto and Vancouver are not the only cities in Canada where it’s hard to buy an affordable home.
Canada Mortgage and Housing Corporation says to expect its first ‘red’ warning for the national housing market when it issues its next snapshot October 26.
The president and CEO of the federal Crown corporation says ”CMHC has recently observed spillover effects from Vancouver and Toronto into nearby markets.”
In its most-recent quarterly assessment in July, evidence of problematic conditions in the overall markets went from green or ‘weak’ in April to yellow or ‘moderate’.
A ‘red’ warning was issued for the Vancouver, Toronto, Calgary, Regina and Saskatoon markets.
The upcoming assessment will paint the national housing picture that colour.
CMHC President and CEO Evan Siddall says ”high levels of indebtedness coupled with elevated house prices are often followed by economic contractions. The conditions we now observe in Canada concern us.”