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CMHC issues first "RED" warning for housing market

Happy Monday Everyone!

 

Recent changes in the mortgage world regarding mortgage qualifications are now taking effect. But, that was last week, and I'm sure you've heard about it plenty. (If not, see here). This week, CMHC has identified cities that will be at strong, moderate and low risk for future residential market problems.The four key areas of concern identified by CMHC were:

1. Over-heating

2. Price acceleration

3. Over-evaluation

4. Over-building.

 

According to the CMHC, they are raising a warning for a  strong risk of problems on the horizon....for Vancouver, Toronto, Calgary, Saskatoon, and Regina.

 

So how will the Fort Sask and Edmonton area fair?? According to CMHC, the Edmonton area, along with Winnipeg, Hamilton, Montreal and Quebec City are all at moderate risk. The lowest risk cities in the 15 city review were Victoria, Ottawa, Halifax, Moncton and St. Johns.

 

So if I look into the proverbial real estate crystal ball, it's hard to say how both the mortgage changes and potential risk of problems will actually impact us here in Fort Saskatchewan. But overall, the local market has shown in the past year to be relatively more stable than for our neighbours to the south and elsewhere around the country. And as far as I'm concerned, that's a great thing. 

 

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