Regina and Saskatoon’s housing markets continue to show strong evidence of overbuilding, Canada Mortgage and Housing Corp. said Wednesday.
In Regina, the overall inventory of completed and unsold homes per 10,000 population was above the CMHC housing market assessment framework’s critical threshold, in large part due to the multiples sector.
“Combined with an apartment rental vacancy rate that was also above its critical threshold, this has resulted in the framework’s continued assessment of strong evidence of overbuilding in Regina,” CMHC said.
The agency continues to detect weak evidence of overheating and overvaluation in Regina’s housing market. The seasonally adjusted average Multiple Listing Service price in the city rose to $308,885 in the first quarter of 2017 from $307,145 in the previous quarter.
CMHC also found strong evidence of overbuilding in Saskatoon’s housing market. The overall number of completed and unsold units per 10,000 people remained above historic averages.
“This was largely due to the multiples sector, where inventory levels for ownership apartment units remain elevated,” CMHC said.
“As well, Saskatoon’s purpose-built rental apartment vacancy rate was significantly above its critical threshold.”
The agency says there’s weak evidence of overheating and moderate evidence of overvaluation in Saskatoon. The seasonally adjusted MLS price in the city increased to $338,443 in the first quarter of 2017 from $335,463 in the previous quarter.
CMHC says there’s still strong evidence of problematic conditions in Canada’s housing market, citing slow growth in the young adult population, a decrease in disposable income and a pickup in home price growth.