Canadian mortgage insurer to issue first 'red' warning for housing market
CMHC to issue highest risk rating on Oct 26
Canada's government-sponsored mortgage insurer is raising alarm bells on the risks to the housing market.
According to a column in today's Globe & Mail, the CMHC is preparing to issue its first national 'red' warning for the Canadian housing market as a whole.
The move is in response to a trio of measures announced last month to tighten Canadian lending standards. Those changes went into effect today.
"CMHC has recently observed spillover effects from Vancouver and Toronto into nearby markets. These factors will be reflected in our forthcoming Housing Market Assessment on Oct. 26. They will cause us to issue our first "red" warning for the Canadian housing market as a whole," CMHC President Evan Siddall wrote today.
Here is today's random Canadian housing sampler.
This house was listed Saturday in Vancouver's Kitsilano neighbourhood and the listing says it "is in poor condition and needs TLC" and that it's priced "at land value only." They suggest tearing it down because it's zoned for a duplex on a 50x112' lot.
It "will not last" the listing says, at $2,998,000.