Canada Mortgage and Housing Corp. (CMHC) has been eyeballing the real estate market in Edmonton, and have found moderate evidence that housing is overvaluated in this city.
Spell-check will flag overvaluated as a non-word, a combination of over and evaluated, but the message is pretty clear.
In the last quarter of 2015 CMHC observed that home prices are dropping but not in proportion or not supported by other economic drivers in Edmonton, such as income and jobs, mortgage rates and growth of the population. This means, despite what’s happening in Alberta the growth of house prices has not kept in step. The rate of decline is not the same rate of decline as other drivers which could be problematic.
When CHMC does as assessment of a market,…