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Metro Vancouver’s housing has maintained a moderate degree of vulnerability as analysts remain cautious of imbalances in the market, according to a Canada Mortgage and Housing Corporation report.

Vancouver’s housing market stability went from a rating of highly vulnerable to moderate last summer for the first time in three years.

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The latest CMHC’s Housing Market Assessment, released Thursday, says house prices are falling as consumers face reduced buying power because of a drop in disposable income and higher interest rates.

The corporation maintained a rating of moderate, however, for overvaluation since the threshold was breached at least twice in the year before the third quarter of 2019. Overvaluation is detected when house prices remain significantly above the levels warranted by drivers of housing markets such as income, population, and actual and expected financing costs.