It is not just the red hot housing markets of Greater Toronto and Vancouver, but the spill-over effect to outlying municipalities that has the Canada Mortgage and Housing Corporation (CMHC), issuing a “red alert” about the country’s real estate sector as a whole.
“We’re observing the spillover effects in the central markets of Vancouver and Toronto, affecting nearby markets. In Toronto, it’s affecting Hamilton and Oshawa. Outside of Vancouver, its places like Richmond and the Fraser Valley you’re seeing price acceleration,” said CMHC’s CEO Evan Siddall.
The red alert is not forecasting a crash as Mr. Siddall’s warning came in the form of an opinion column in Monday’s Globe and Mail.
Meanwhile, B.C. Finance Minister Mike de Jong deflected questions of whether B.C. took too long to implement measures to cool the local housing market.
When speaking with the editorial board of the Globe: “I think the average citizen would say, ‘Well, why the hell weren’t you collecting this basic data for some time?’ Fair enough, we weren’t. It stopped in the 1990s some time. We proceeded to begin collecting that data and when we were in the position to make decisions on information that was reliable, we did so.”
Meanwhile, only time will tell whether the restrictions will send the real estate market plummeting.