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Overvalued prices in the real estate markets of Toronto, Winnipeg and Regina are now at “high risk,” according to the latest assessment from Canada’s federal housing agency.

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Vacancy rates in Canada’s energy capital have spiked as companies lay off thousands of employees in the worst oil rout in recent history, but insiders say the official tally may underestimate just how empty offices are.





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Canada Mortgage and Housing Corp., which advises the government on housing policy, refused to wade into the debate over whether proposed policy changes by the Conservatives might stoke markets like Toronto, but others suggest they have the potential to do just that.

“They seem to be just throwing fuel on the fire,” said David Madani, Canada economist for Capital Economics.

In the past two weeks, Prime Minister Stephen Harper has offered two new policies aimed at garnering support among homeowners. On Wednesday, he said a re-elected Conservative government would allow first-time buyers to draw up to $35,000, compared to the current $25,000, from their registered retirement savings plan accounts without any penalty. His party has also proposed a permanent 15 per cent tax credit for renovations from $1,500 to $5,000.