Housing markets in most major cities appear to be sound, but rising prices and a glut of supply have put Regina and Winnipeg at "high risk" of a correction.

Despite hot markets in Toronto and Vancouver, neither city is at much risk of a crash, the Canada Mortgage and Housing Corporation said in a new market analysis. Nationally, Canada's housing market appears to be 3 per cent to 4 per cent overvalued, said CMHC chief economist Bob Dugan.

But the picture is more dire in Regina, where home prices boomed in recent years and developers responded with an onslaught of new homes, particularly condominiums. That has left the city's housing market at high risk of a downturn, the federal housing agency said. It was a similar story in Winnipeg. In both cities, CMHC warned that prices have risen much faster than incomes and overbuilding has become a problem.

In Toronto and Montreal, record levels of condo construction and large numbers of unsold condos pose a moderate risk to housing markets, while in Vancouver, sky-high home values and strong price growth this year appear to be supported by economic fundamentals such as population growth and land supply, leaving the city at low risk of a crash.

Slowing home sales and flat prices have lowered the risks to housing markets in Edmonton and Calgary, CMHC said.

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To study the risk of a house price correction, CMHC considers four factors: If demand for homes outstrips supply, if prices start growing at a faster rate, if home prices start to seem overvalued compared to economic fundamentals, and whether builders respond to hot market conditions with too much supply. In the past, it has found that combinations of these factors have led to a spike in claims for its mortgage default insurance.

(Cities are listed from east to west.)