“Housing markets across Canada indicate increasing evidence of overvaluation with prices and household debt levels again rising faster than wages, most notably in Vancouver and Toronto,” Robert Kelly, chairperson for CMHC, wrote in his opening address. “As a result, the Board was very supportive of the federal government’s announcement in December of an increase in the minimum down payment for mortgage loan insurance and OSFI’s intention to increase capital levels for mortgage assets held by lenders.”
The Crown Corporation noted profits of $1.5 billion on revenues of $4.6 billion last year. Still, that was down from $2.63 billion a year ago. That was due to lower interest rates.
Claims paid fell by 9.5% to $353 million. CMHC cites a “healthy real estate market” and improved underwriting with helping limit claims.
Market analysis highlights
Last year, CMHC launched its new Housing Market Insights publication; it also published data on foreign condo ownership in 16 markets in Canada.
“Ultimately, our Market Analysis and Research Activities aim to facilitate access to housing and contribute to financial stability,” CMHC said in its report. “We support informed decision making through the creation, interpretation and sharing of housing-related data and information.”
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The Canada Mortgage and Housing Corporation released its annual financial report this week, and one of the first thing mentioned was the overvaluation issues plaguing two of Canada’s hottest markets.