The Metro Vancouver housing market remains overvalued according to a Canada Mortgage and Housing Corporation (CMHC) report released Wednesday.
The latest analysis found strong evidence of overvaluation in reports in both April and July this year.
They also found moderate evidence of price acceleration. Townhouses and apartments are in high demand from first time homebuyers and families, and bidding wars were breaking out.
Moderate evidence of price overheating was also found in July, when the evidence was weak in April.
Overheating is a situation in which demand consistently outpaces supply.
Perhaps because homes are being snatched up as quickly as they can be built, there was little evidence of overbuilding in the region – something that is becoming problematic in Saskatchewan, Alberta, and Manitoba.
Between Vancouver, Toronto, and several other markets showing problems, Canada as a whole shows “strong evidence of problematic conditions,” the report said.
The area covered by the CHMC study includes Vancouver, the North Shore, and the South of the Fraser Region. It extends as far east as Langley and Maple Ridge.
