The city’s real estate market is showing only moderate risks of developing problems in the near term, a new report shows.
The Canada Mortgage and Housing Corp. released its first-quarter housing market assessment for 2021, showing the city has an overall moderate risk that it could negatively impact financial stability.
That’s up from the fourth quarter of last year, when the overall risk was deemed low.
“The two major problems we’ve had in the market were overvaluation and excess inventories, which combined caused the market to move from low to moderate overall (vulnerability) assessment,” says Christian Arkilley, senior analyst with CMHC.
Yet despite the risk increase, he notes the market is in relatively good shape with no signs of overheating or price acceleration. By contrast, other markets in central Canada — most notably Ottawa and Montreal — have moderate risks of overheating and price acceleration.
Source:: Edmonton Journal – Lifestyle