{"id":1781,"date":"2016-04-28T10:10:50","date_gmt":"2016-04-28T17:10:50","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=1781"},"modified":"2016-04-27T15:49:55","modified_gmt":"2016-04-27T22:49:55","slug":"vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/","title":{"rendered":"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern"},"content":{"rendered":"<p style=\"text-align: justify;\">Canada Mortgage and Housing Corp., the Crown corporation that monitors the residential real estate market, said Wednesday it sees some overvaluation in Vancouver.<\/p>\n<p style=\"text-align: justify;\">But while CMHC is now witnessing strong evidence of overvaluation in Canada\u2019s most expensive city\u00a0 \u2014 with a \u201cmoderate\u201d overall risk factor \u2014 it said price acceleration isn\u2019t a concern at this point, rating that issue as \u201cweak.\u201d<\/p>\n<p style=\"text-align: justify;\">\u201cWhen we think about price acceleration, we certainly have seen fairly strong price growth in the Vancouver (census metropolitan area) and a lot of price growth has been targeted in certain parts of the market more than other, \u201d said Bob Dugan, chief economist with CMHC, in a conference call with journalists.<\/p>\n<p style=\"text-align: justify;\">The real estate board of Greater Vancouver reported that prices have risen 23.2% from a year ago, according to its price index. The average cost of a detached home in Metro Vancouver was $1.7 million in March.<\/p>\n<p style=\"text-align: justify;\">\u201cWe have seen faster price growth and it is having an impact on our measure of price acceleration but it isn\u2019t sufficient to get to a threshold where we would get to problematic at this point in time,\u201d Dugan said, noting price acceleration is evaluated over a three-year window.<\/p>\n<p style=\"text-align: justify;\">\u201cOver that (period), we\u2019ve seen periods where prices are up in Vancouver and prices are down as well. That mix of conditions means we haven\u2019t gotten acceleration above the threshold yet but it is something we are monitoring.\u201d<\/p>\n<p style=\"text-align: justify;\">Robyn Adamache, principal, market analysis in Vancouver with CMHC, said while price has been strong along all types of residential housing, it is a segmented market and in the detached category it has been particularly strong.<\/p>\n<p style=\"text-align: justify;\">CMHC said prices are being affected by detached home prices, which are caused by land constraints in the Lower Mainland of British Columbia. \u201cWe have different types of homes being built than a few years ago. Homes are much larger and often include a secondary suite and\/or a laneway home,\u201d said Adamache, explaining the price growth.<\/p>\n<p style=\"text-align: justify;\">Overall, the CMHC gave Vancouver a \u201cmoderate\u201d rating when it comes to evidence of problematic conditions, due to strong economic fundamentals in the city. \u201cWe\u2019ve had a continuation of strong job growth in the Vancouver area with about five per cent growth, that means about 65,000 jobs added (in the first quarter) compared to the same period last year,\u201d the CMHC market analyst said.<\/p>\n<p style=\"text-align: justify;\">Toronto, Calgary, Saskatoon and Regina were the only cities on the list of 15 that had strong evidence of problematic conditions. CMHC defines problematic conditions as imbalances in the housing market that occur when overbuilding, overvaluation, overheating and price acceleration, or a combination of those issues exceed historical norms.<\/p>\n<p style=\"text-align: justify;\">\u201cIn Toronto this is due to a combination of price acceleration and overvaluation and while we do not detect overbuilding we do have concerns about the high inventory of condominium apartments,\u201d said Dugan. In Calgary, Saskatoon and Regina, the issue is a combination of overvaluation and overbuilding.<\/p>\n<p style=\"text-align: justify;\">For the entire country, CMHC says the evidence of problematic conditions on a national level remains weak. However, the national picture often does not reflect local markets very well, Dugan said.<\/p>\n<p><a href=\"http:\/\/business.financialpost.com\/personal-finance\/mortgages-real-estate\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\" target=\"_blank\">Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern<\/a> by Garry Marr | Financial Post<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canada Mortgage and Housing Corp., the Crown corporation that monitors the residential real estate market, said Wednesday it sees some overvaluation in Vancouver. But while CMHC is now witnessing strong &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1781","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Canada Mortgage and Housing Corp., the Crown corporation that monitors the residential real estate market, said Wednesday it sees some overvaluation in Vancouver. But while CMHC is now witnessing strong &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern\",\"datePublished\":\"2016-04-28T17:10:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/\"},\"wordCount\":551,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Market Updates\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/\",\"name\":\"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2016-04-28T17:10:50+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/04\\\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling &amp; Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern &#8226; Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/","twitter_card":"summary_large_image","twitter_title":"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"Canada Mortgage and Housing Corp., the Crown corporation that monitors the residential real estate market, said Wednesday it sees some overvaluation in Vancouver. But while CMHC is now witnessing strong &hellip; [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern","datePublished":"2016-04-28T17:10:50+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/"},"wordCount":551,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Market Updates"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/","url":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/","name":"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2016-04-28T17:10:50+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2016\/04\/vancouver-houses-are-overvalued-but-cmhc-says-price-acceleration-isnt-a-concern\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"Vancouver Houses Are Overvalued, but CMHC Says Price Acceleration Isn\u2019t a Concern"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling &amp; Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/1781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=1781"}],"version-history":[{"count":2,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/1781\/revisions"}],"predecessor-version":[{"id":1783,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/1781\/revisions\/1783"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=1781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=1781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=1781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}