Canada Mortgage and Housing Corp. (CMHC) is keeping its overall risk rating for the national housing market at strong.
The federal housing agency says overvaluation at the national level remains moderate and strong evidence is seen in Toronto, Vancouver, Hamilton, Ont., and Victoria.
Toronto and Hamilton continue to show strong evidence of overall problematic conditions due to price acceleration, overvaluation and overheating due to demand outpacing supply in the rental, resale and new home markets.
CMHC's quarterly report, which covers the period between April and July, comes after the Ontario government introduced rules aimed at cooling Toronto's housing market.
The report says the evidence of overheating in the Vancouver market has increased from weak to moderate due to townhomes and apartments seeing high demand.
Meanwhile, evidence of overbuilding has increased to seven centres from six as Quebec's rating grew from weak to moderate due to a high number of rental apartment starts outpacing demand. Markets in the Prairies continue to show moderate to strong evidence of overbuilding.
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