Housing Market Assessment

PDF - Publication

Description

The Housing Market Assessment (HMA) publication evaluates the housing market conditions that may be problematic in selected Census Metropolitan Areas.

As of the third quarter 2020, all assessments are now available in a single report under the ‘Canada’ geography selection. Use the menu at the beginning of the report to navigate to the region of your choice.

Highlights from the Q3 release

The Canadian housing market continues to see a moderate degree of overall vulnerability.
Housing market activity across Canada slowed significantly between first and second quarters of 2020 due to the effects of COVID-19.
There was sharp pullback in new listings and resulting low levels of inventory. This maintained some pressure on house prices in local housing markets that were seeing strong activity prior to the crisis.
As the housing market fundamental weakened, most Census Metropolitan Areas experienced an increase in average overvaluation estimates, between first and second quarter.

Geography: Edition:

Author:: CMHC
Document Type:: PDF
Date Published:: September 21, 2020
ID Number:: 68456

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About the Housing Market Assessment

The Housing Market Assessment provides timely, accurate, and reliable assessments of Canadian housing markets. It identifies vulnerabilities for the public.

The HMA builds on published economic and financial research taking into account the Canadian housing markets. It uses different econometric methods and data from various sources.
It validates the models with past periods where there were housing imbalances. Comparisons such as Toronto in the late 1980s and Calgary prior to the global financial crisis of 2007 – 2008 are analyzed.

To obtain an accurate picture of the overall state of the housing market, multiple measures and indicators are analyzed. The HMA uses a comprehensive, multidimensional, and integrated framework to assess housing market conditions.

To capture imbalances in housing markets, the HMA framework assesses 4 factors:

housing demand outpaces supply
sustained increase of house prices
overvaluation of house prices in comparison to levels that can be supported by housing market fundamentals
overbuilding when the inventory of available housing units is elevated

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