The Canadian Mortgage and Housing Corporation says there is now “strong evidence” of problematic conditions in both Vancouver and Toronto housing markets, in a report that also highlights real estate overvaluation across the country.

“We now have sufficient evidence to raise our overall assessment of problematic conditions in the Vancouver market to high,” the CMHC said in its latest report, released Wednesday.

Evidence of problematic conditions in Canada’s housing market as a whole has increased from weak to moderate since the last CMHC report.

The corporation says that overvaluation and overbuilding are still the main issues observed in 15 different housing markets across Canada.

“For Canada overall, we now detect strong evidence of overvaluation,” CMHC’s chief economist, Bob Dugan, said in a news release.

“As a result, our overall assessment has moved from weak to moderate since the last report. Moreover, the greater range of evidence of problematic conditions in Vancouver has led us to conclude that there is now strong evidence of problematic conditions in our overall assessment of the Vancouver housing market.”

The latest Housing Market Assessment, which serves as an “early warning system” for emerging problems, says that accelerated growth in housing prices is concentrated in British Columbia and Ontario.

“This effect is only partially counter-balanced by weaknesses in the oil-dependent provinces of Alberta, Saskatchewan and Newfoundland and Labrador,” the report says.

Despite the lower prices in Calgary, Saskatoon and Regina housing markets, the HMA still noted strong evidence of problematic conditions, caused by overbuilding.

There is “weak” evidence of problematic conditions in Ottawa and the Maritimes, the assessment said.