Home prices are rising at a faster rate, federal housing agency says
TORONTO — There is mounting proof that home prices are rising at a faster rate, Canada’s federal housing agency said Wednesday as it increased its risk rating for the national housing market to its highest level for the first time.
Back in July, Canada Mortgage and Housing Corp. said there was little indication of price acceleration, which occurs when home prices are climbing faster than the historical average.
But in its latest housing market assessment report released Wednesday, CMHC said it now sees moderate evidence that price acceleration is occurring on a national level.
Accelerating prices are a possible sign that speculation — the buying and selling of homes to turn a profit — is taking place, according to the agency.