This modest house on busy Dupont St. near Ossington sold for a cool million dollars in April, 2014 (it does have a coach house in back).
Source: Toronto Star
Toronto is now at “high” risk of a housing correction — up from “moderate” just four months ago, says a quarterly examination of risks to the national housing market, released by the Canada Mortgage and Housing Corporation Thursday.
But rather than put a real number to that risk — the federal housing agency estimated the Canadian market was about 3 to 4 per cent overvalued last April — its economists are sticking to colours.
Toronto’s a red for risk.
Vancouver, surprisingly considered at low risk despite a surge in house sales and prices this year, is green. Montreal is at moderate risk, or yellow.
The risk models and housing analysis used by CMHC economists are just too complex and subject to too many variables, CMHC’s chief economist told reporters yesterday in a conference call, declining all efforts to put some numbers to the risk levels in its quarterly House Price Analysis and Assessment (HPAA) report released Thursday.
Overall, the Canadian housing market remains at “modest risk” — a yellow — of overvaluation, said Dugan, although conditions remain low risk in most of the 15 major real estate markets examined.
“Basically, the HPAA is attempting to identify problematic conditions before they get too far down the line so the market can adjust in a more healthy way,” said chief economist Bob Dugan.
Just seeing CMHC talk about elevated risk in a market might encourage builders, for instance, to pull back as to not oversupply the market, he added.
Please read the full post in Toronto Star
