Canada Mortgage and Housing Corp. says the spread of affordability issues to real estate markets beyond Vancouver and Toronto will lead it to issue its first “red” warning for the national housing market.
“CMHC has recently observed spillover effects from Vancouver and Toronto into nearby markets,” the federal Crown corporation’s president and CEO Evan Siddall said in a column published in the Globe and Mail. “These factors will be reflected in our forthcoming Housing Market Assessment on Oct. 26. They will cause us to issue our first “red” warning for the Canadian housing market as a whole.”
“High levels of indebtedness coupled with elevated house prices are often followed by economic contractions,” Siddall said Monday in his article. “The conditions we now observe in Canada concern us.”