The Canadian Mortgage and Housing Corporation released their 3rd Quarter Housing Market Assessment yesterday.
In the report they say home price acceleration along with continued overvaluation is present as home prices further detach from fundamental factors such as labour income.
They say these factors are creating a high degree of vulnerability in the Canadian housing market.
This all means they say that the housing market is more vulnerable to a potential downturn with greater consequences.
The year started off with historically low interest rates, government supports and mass vaccinations that provided higher purchasing power and more disposable income among Canadians.
However by the third quarter recent home price growth haven’t been fully explained by housing market fundamentals.
