CMHC raises red flag about housing, cites spillover from Toronto, Vancouver
TORONTO — The head of the federal housing agency is raising a red flag about the state of Canada’s real estate sector, saying affordability concerns have spilled over from the country’s two most expensive cities to nearby markets.
In an opinion piece published Monday in the Globe and Mail, CMHC CEO Evan Siddall says the agency will raise its overall risk rating for the national housing market to “strong” from “moderate” for the first time when it issues its housing market assessment on Oct. 26.
“Affordability pressures hurt lower-income households the most and cause real socioeconomic consequences,” Siddall wrote.
“CMHC has recently observed spillover effects from Vancouver and Toronto into nearby markets. These factors … will cause us to issue our first ‘red’ warning for the Canadian housing market as a whole.”