The Canada Mortgage and Housing Corporation has released its analysis of house prices and concludes that while there is some overvaluation, there is little risk from overheating or overbuilding.

The agency says that Montreal, Quebec, Toronto, Calgary and Halifax all have some characteristics of overvaluation but there is some improvement. In the rest of the country CMHC believes that the market is broadly consistent with interest rates and other economic factors.

Bob Dugan, CMHC’s Chief Economist says: “Across the 8 CMAs examined, there is no overheating or acceleration. There is however a cautionary note with respect to overbuilding in Toronto and Montreal. The number of units under construction is elevated in these centres.”

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