CMHC issues red alert over hot housing market
The Canada Mortage and Housing Corporation has issued its first ever red alert, warning of escalating real estate prices.
CMHC says homeowners are getting priced out of the market and not just in major centres like Vancouver and Toronto but in smaller cities like Hamilton.
The report warns of the domino effect, Toronto homeowners are buying in Hamilton and as a result, prices in the Steel City have climbed, so Hamilton homeowners are forced to look to areas like St. Catharines for more affordable housing.
But the report's authors say population growth and income aren't in line with the ballooning prices which is a major concern.
The price of an existing home in Hamilton is up by about 14 percent, and in the last year the price of an average home has climbed from $447,000 to over half a million.
The new October report has found Hamilton's housing market is"strongly problematic" in its overall assessment, with overvaluation of homes, continuing to be strong.