[URBAN NOTE] "Housing market risk 'high' in Toronto, Winnipeg and Regina, CMHC says"

[rfmcdonald]

CBC News reports on the Canadian Mortgage and Housing Corporation's concern that some Canadian cities might be facing a real estate bubble.

Canada's housing market is in no danger of a correction nationally, but that's not the case in Toronto, Regina and Winnipeg where the CMHC says there's a "high risk" of a slowdown.

In its quarterly house price analysis released Thursday, the Canada Mortgage and Housing Corporation says Toronto, Regina and Winnipeg are at "high risk" of a housing correction for a variety of factors.

The housing agency looks at market conditions in 15 major housing markets across the country. While most markets get a low or moderate risk in the CMHC's eyes, the agency singled out Regina, Winnipeg and Toronto for being in a possible danger zone.

The reasons for concern are not the same in each city. In Toronto, the main concern is that "the rise in house prices has not been matched by growth in personal disposable incomes" the CMHC said, adding there is evidence of overbuilding in the market, with a historically high level of unsold units.