Duggan and CMHC’s quarterly assessment released on Tuesday assigns low, moderate or high vulnerability ratings to the entire country of Canada and 15 major cities based on four factors: overheating, price acceleration, overvaluation, and excess inventories.
I bet you can guess where we fell in terms of our vulnerability based on that 4 critera?
Those 4 Factors:
When those factors become imbalanced, the risk of housing instability is increased. In several areas at once, the agency posits that markets could be more vulnerable to troubles and people could begin struggling with their mortgages.
CMHC’s second-quarter assessment of the Canadian market found moderate degrees of vulnerability when it examined the country’s risks of overheating, price acceleration, and overvaluation.
It found a low level of vulnerability linked to the country’s excess inventories rate but still gave the country a “high” vulnerability ranking overall.
You can read more about the CMHC assessment here.