The red alert got a lot of attention when the CEO of CMHC, Evan Siddall, warned it was coming in an editorial for the Globe and Mail. But once the actual report dropped, reaction was strangely muted.
The CMHC Housing Market Assessment pointed to nine of 15 major markets in Canada as having problems with overvaluation, overbuilding or both. But the warning was surprisingly soft and the agency’s projections seem to indicate there is no threat of a housing bubble bursting. In fact, even in the worst case scenario, CMHC’s projections show things continuing pretty much along their current track.
A parallel report produced by the consulting firm PricewaterhouseCoppers says, essentially, the same thing – despite ongoing speculation about a crash, there is room for growth in the Canadian real estate market. "