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Edmonton’s housing market showed “moderate evidence of overvaluation” in the third quarter of 2015, Canada Mortgage and Housing Corp. said Wednesday in a housing market assessment.

But prices are moving down, helping to push the market back into balance, Christina Butchart, the CMHC’s principal, market analysis, Edmonton, said Wednesday.

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“In the Edmonton market right now, if you look at resale price data on a seasonally adjusted basis, we have seen prices move down in five of the last six months,” Butchart said in an interview.

“The fact that prices are softening because we’ve had lower sales and higher listings is where we think the market really should be right now — that direction.”

In an annual forecast this month, the Realtors Association of Edmonton predicted total sales will fall 2.3 per cent year-over-year to fewer than 17,000 in 2016. Twelve-month average selling prices for single-family detached homes and condos will each fall 2.7 per cent in 2016, the association said. In 2015, the 12-month average price for a single-family home was $437,569, while the 12-month average condo price was $252,954.