Ephraim Vecina
Canadian Real Estate Wealth

The B.C. government’s announcement on Monday (July 25) of a new 15 per cent foreign buyer’s tax will impact not only overseas purchasers of residential real estate, but Canadian citizens as well.

“The provincial government really should have looked downstream to see all the different groups that would be impacted by this retroactive tax. I’m just not sure this was thoroughly thought out,” Royal LePage West agent Adil Dinani told MoneySense.

“The real concern is the implementation of this tax,” Dinani stated. “Usually there’s a policy effective date, like with the last mortgage amortization or down payment changes, but this time there was no consultation. Just an imposed policy.”

The levy will be applied to all B.C. homes sold during and after August 2, 2016.

Mere days after the announcement, the effects of the steep tax have already made themselves felt among agents in Vancouver, where the benchmark price has breached the $1.5-million mark in June. Foreign nationals have purchased over $1 billion worth of properties in B.C. between June 10 and July 14 this year.

“Being on the frontline, we’ve already seen fall-out,” Dinani said on Tuesday (July 26). “I’ve had calls in the last 24 hours from agents representing foreign buyers who are backing out of deals because of this new tax.”

Toronto Royal LePage agent Cailey Heaps Estrin agreed with this grim view, adding that the imposition of the tax will get in the way of what she called an “open and fair market.”

“I just don’t see how it will help, considering how much our nation’s housing market helps the economy,” Estrin said. “There’s not a financial market in the world that doesn’t slow down. Eventually the Vancouver and Toronto market will slow down, so I’m not sure if this tax will create the desired effect.”

Real Estate Board of Greater Vancouver president Dan Morrison argued that the government acted hastily, without even considering the domino effect downstream.

“Implementing a new real estate tax with just eight days’ notice and no consultation with the professionals who serve home buyers and sellers needlessly injects uncertainty into the market,” Morrison said.

Copyright © 2016 Key Media Pty Ltd

Ephraim Vecina
Canadian Real Estate Wealth

In the wake of the B.C. government’s announcement of a new 15 per cent tax on foreign buyers of Canadian homes, real estate professionals have voiced vehement opposition, mirroring in many ways Chinese would-be buyers’ fears over the levy.

“It’s unfair to the buyers and it’s also unfair to the sellers,” Urban Development Institute CEO Anne McMullin told Business in Vancouver, as published by the South China Morning Post.

“People sold and bought in good faith, knowing what the rules were. Now the government is coming in and completely changing the rules,” she added.

The executive warned that the uncertainty introduced by the new tax, which is scheduled to take effect on August 2, would make investors wary of funneling more of their money into Canadian markets.

“You could buy something and then, two years later, they’re going to completely change the rules with no warning, consultation or grandfathering. There could be economic fallout,” McMullin said.

Royal LePage West agent Adil Dinani agreed that the consequences have already started manifesting.

“I’ve had calls in the last 24 hours from agents representing foreign buyers who are backing out of deals because of this new tax,” Dinani said on Tuesday (July 26), the day after the tax was announced by the B.C. government.

“The provincial government really should have looked downstream to see all the different groups that would be impacted by this retroactive tax. I’m just not sure this was thoroughly thought out,” he stated.

Finance Minister Mike de Jong remained adamant in his Tuesday statement, saying there would be no special treatment or consideration for transactions signed before August 2 (with title transfers scheduled for the next day).

Copyright © 2016 Key Media Pty Ltd

Justin da Rosa
Canadian Real Estate Wealth

A leading investor shares his tips to on how to excel in a struggling real estate market.

Real estate has its ups and downs, and Wayne Weum, an Edmonton-based investor, is currently experiencing the low points. But that won’t stop him from managing his portfolio and even picking up some diamonds in the rough.

“In this economy, you have to be active and attentive in your business,” Weum writes in his market plan brief, which he shared with Canadian Real Estate Wealth. “First and foremost, whatever you have in your existing portfolio must be meticulously maintained and offered to the rental market as something that stands out.”

These are some tips Weum offers to other investors who may be in a similar situation.

Stay busy

“We’ve spent most of the summer so far making the little fixes that have been put off becausee they weren’t a priority. Now things like painted trim, new doorknobs, plumbing upgrades, and brand new appliances are what we are on top of,” Weum writes. “Going forward, we are confident that the market will come around and the demand for housing will consequently increase.”

Choose your next investments wisely

“Find a neighborhood that offers real estate deals that will be profitable and provide positive cashflow even in the slower economic times.  This is exactly why I like townhouses so much,” Weum writes. “The tenants are typically small families who work close by in retail and service industries.  The love being part of a community and having close access to family entertainment and community services.”

He provides a snapshot of an area in Sherwood Park he plans on targeting to hopefully find some deals this year.

Find motivated sellers

“We pay particular attention to the expired listings, as this is where we may find an opportunity,” Weum writes. “The comparables in the area were selling for close to their list price, so it may be possible that the unsold units were mismarked or inappropriately priced.”

Weum offers a step-by-step plan to help you win some deals. Find those on the next page.

Copyright © 2016 Key Media Pty Ltd

New B.C. tax on foreign homebuyers will help Canadian banks: Moody?s

? BARBARA SHECTER
The Vancouver Sun

The B.C. government’s move to slap a 15 per cent tax on foreign homebuyers in Vancouver is positive for the country’s biggest mortgage lenders, Moody’s Investors Service said Wednesday.

“This land transfer tax is credit positive for Canadian banks because it should slow the significant rise in Vancouver house prices over the past few years, helping stabilize banks’ mortgage collateral values in that city,” the ratings agency said in a report.

Three-quarters of outstanding residential mortgage debt in Canada is held by the largest seven banks, according to the report by analysts led by Moody’s assistant vice-president Jason Mercer.

House prices in Vancouver have been on a tear since 2005, climbing by nearly 250 per cent, faster than any other major Canadian city.

This growth has accelerated in the past 12 to 18 months,” the report says, adding that the Canadian Real Estate Association says Vancouver experienced a 32 per cent year-over-year increase in house prices in June alone.

There isn’t a great deal of available information to track foreign ownership in Canadian real estate, but preliminary data from B.C.’s ministry of finance and Moody’s own research “suggest it is not immaterial,” the ratings agency report said.

“Therefore, we believe this tax will likely slow down the steep house price appreciation evidenced over the last decade in the Vancouver real estate market,” Moody’s said.

The additional land transfer tax, which was announced Monday and is to go into effect Aug. 2, will be on top of existing general property transfer taxes. It will apply to the full value of a residential real estate transaction where the purchaser is not a Canadian citizen or permanent resident.

Mercer, the Moody’s analyst, said a foreign buyer will pay $168,000 in land transfer taxes on a $1 million home in Vancouver after Aug. 2, when the new foreign buyers’ tax kicks in, compared to the $18,000 cost for a Canadian citizen or permanent resident.

The ratings agency’s report notes that other jurisdictions including Hong Kong and Australia recently imposed similar taxes designed to stem foreign investment in real estate.

“We believe the absence of such a tax [in B.C.] accelerated the pace of foreign investment in Vancouver and this levels the playing field with those jurisdictions,” the analysts wrote.

However, they cautioned that the new tax “may push investment into other Canadian markets, such as Toronto,” which would have the effect of “precipitating price increases” in those cities.

© 2016 National Post

Municipalities outside of Metro Vancouver will be watching closely to see if the new foreign buyers? transfer tax announced this week will affect housing markets in their communities

Jennifer Saltman
The Vancouver Sun

On Monday, the provincial government introduced legislation that sets the property transfer tax at 15 per cent for purchasers of residential real estate who are foreign nationals or foreign-controlled corporations.

According to the latest statistics collected by the province, foreign nationals invested more than $1 billion in B.C. property between June 10 and July 14, more than 86 per cent of it in the Lower Mainland.

The new tax will take effect Aug. 2 and affect residential property purchases in Metro Vancouver, excluding the Tsawwassen First Nation treaty lands.

“At the margin, this is very likely to lead some foreign buyers who want to invest in B.C. residential real estate to focus on other markets where the higher (property transfer tax) doesn’t apply — the Fraser Valley, and perhaps Kelowna, Victoria and Whistler,” said Jock Finlayson, executive vice-president of the Business Council of B.C.

Charles Wiebe, president of the Fraser Valley Real Estate Board, said many foreign buyers are looking to live or own specifically in the areas in which they are purchasing, and a tax may have little effect on their decision. Finlayson agreed.

“Any noticeable impacts will only be visible over time,” Wiebe said.

Whistler Mayor Nancy Wilhelm-Morden said foreign investment is not a new thing in her community, however she doesn’t want to see the same kind of speculative investment that takes place in Vancouver.

“That is what our concern is,” she said.

Wilhelm-Morden said she has no idea what will happen in Whistler because “this is all uncharted territory,” but she’ll be interested to see if there is an impact.

Chilliwack, on the other hand, currently has little foreign real estate investment. Mayor Sharon Gaetz said her city is struggling with homelessness and a lack of affordable housing, but she’ll be watching to see if the tax has a “trickle down effect.”

Finlayson noted that the government has reserved the right to apply the tax in other areas in B.C. if necessary and the finance Minister has already hinted that if foreign buying pressure does migrate to other regional markets, the province could take action. One region the minister mentioned in particular was the Capital Regional District, which includes Victoria.

Victoria Mayor Lisa Helps said she was not surprised to see her region mentioned as a place where the tax may be extended because she has brought the housing situation in Victoria to the province’s attention on more than one occasion.

“It’s impossible for a working person or young family to buy a house,” she said. “It’s impossible.”

Helps would not speculate on whether the tax will push foreign buyers into Victoria’s market, but said she will be watching the data released by the government in the coming months and if there is a change, she expects the province to act accordingly.

“I would like the province to make decisions based on data and not based on what some mayor in Victoria thinks might happen,” she said.

© 2016 Postmedia Network Inc.

PHASE 1 SOLD OUT: Earthy tones, playful elements on display at Concord Brentwood

Mary Frances Hill
The Province

Concord Brentwood

Where: 4756 Lougheed Highway, Burnaby

What: A total of 10 highrise towers, between 40 and 50 storeys. The first tower of 45-storeys in Phase 1 is sold out

Developer and builder: Concord Pacific Developments Inc.

Sales centre: 4750 Kingsway, Burnaby (Metrotown mall)

When your home overlooks a 13-acre Burnaby park, a connection to nature no doubt comes naturally.

But it takes some real talent to bring that sense of connection inside the home while incorporating a luxurious palette — as Olivia Lam has with the display homes at Concord Pacific’s Concord Brentwood community.

With a deft blend of earthy dark tones with sensuous texture in her materials, Lam, principal of Liv Interiors, creates a haven that pays respect to the surrounding nature of the community.

She adds bold patterns and playful touches and manages to make all these elements look seamless from one room to the next.

In a room imagined for a child, Lam eschews the traditional childlike primary colours in favour of a mini-tree house bed.

“This children’s house-bed allows the room’s focal point to be one of playfulness and innocence,” she says.

“It’s meant to evoke a tree house-like sensibility, bringing a dash of the outdoors to the comforts of an indoor space, keeping aligned to the natural earthy tones of the suite in general.”

The tree house bed is also meant to remind visitors of the new park and trails that surround the development, she adds.

That green space has been a magnet for those buyers, with the first phase of the tower community now sold out.

To emphasize her tastes for both luxury and the outdoors element, Lam chose what she calls “deeper earthy neutral tones” throughout one suite and adds a bold pop of purple in the dining room chairs. The plush ‘royal’ stands out in the moody space.

“With this striking colour, we were able to infuse the cuisine dining experience at home with a sense of opulent regality most fitting for the overall lofty space.”

In one bedroom, Lam lays on the textures and patterns with a textured wallpaper, large prints on the duvet and a throw, then a soft and inviting sheepskin rug — all rich, sensuous texture.

“The blend of these elements allows the inhabitant a sense of refinement, presented in an elegantly subtle fashion, while using the complementing shades of neutral colours to set the air of serenity and make the room feel more livedin and organic,” Lam says.

The kitchen is at once compact, but dense in terms of storage. It stands out in one suite for its sense of masculinity, emphasized by the grain of the broad bold vertical grain of the cabinetry facades, seamless integrating the whole area.

Every detail was considered in the kitchen, Lam says.

“A masculine kitchen is more timeless. When you open up the cabinet doors, you’ll see that every inch here has been thoughtfully designed, with minimal unused space, revealing an ergonomic convenience to every storage space, every handle placement.”

© 2016 Postmedia Network Inc

B.C. ?not amending? real estate fee

Rob Shaw
The Province

B.C.’s Liberal government has stood firm despite a barrage of criticism from developers and real estate agents over its foreign buyer tax, admitting Wednesday it expects some real estate deals involving foreigners to collapse.

British Columbians will get a chance to step in and buy the properties that foreign citizens choose not to purchase as a result of a new 15-per-cent foreign buyer tax, said Finance Minister Mike de Jong.

De Jong and Premier Christy Clark offered no apologies Wednesday for the expected negative impact on foreign buyers, nor on British Columbians who have deals to sell to foreigners that may dissolve. As many as 3,000 pre-sale deals (mainly condos) by non-Canadians could be suddenly hit by the new tax and be in jeopardy, according to the Urban Development Institute.

“We knew this was going to be dramatic, we knew that this was a point of departure and we knew that the transition in particular was going to attract attention and have short-term impacts,” said de Jong.

“For a family that has sold their home, sold it to foreign nationals and will have made some other decisions on the basis of that, there is the possibility of complications.

“But I should also be forthright about what is motivating this change and the introduction of this new tax: It is to discourage foreign investment in the residential real estate sector and free up housing for purchasing by British Columbians.”

The Liberal government has been under extraordinary pressure to intervene in the Lower Mainland’s housing market to slow skyrocketing prices that have made purchasing real estate out of reach of many locals.

Premier Clark flatly ruled out changing the tax Wednesday. Some developers and real estate insiders have warned there could be “chaos” in the market because the tax applies to deals and pre-sales signed months or years ago that don’t close until after the tax comes into effect Aug. 2.

“I appreciate this is going to create more work for developers,” Clark told reporters. “But having said that, my job is to protect British Columbians to make sure we put British Columbians first. So we are not going to be exempting anyone, we are not exempting pre-sales, we are not amending the legislation to change pre-sales.”

Clark said her government is on “good legal ground.” People have a week to close their deals before the tax applies, said Clark.

Urban Development Institute president Anne McMullin said the government should allow exemptions for in-progress real estate deals because to do otherwise creates uncertainty in the market, jeopardizes projects and makes banks nervous to provide financing.

“I don’t think it was well thought through,” she said. “It was a political decision, not an economic decision.”

Hani Lammam, executive vice-president of Cressey Development Group, predicted the tax is going to affect the reputation of B.C. as a safe place to do business — something the finance minister has also admitted.

“The 15-per-cent tax in itself is an extremely steep figure and it will definitely completely eliminate any foreign investment in the residential market,” he said.

Lammam said he understands the intent was to “do something” about the 10 per cent of Metro Vancouver residential market being bought by non-Canadians, but he disagrees with the method and lack of consultation. 

That the tax is retroactive and doesn’t exempt contracts already drawn up is “unethical” and “even illegal,” he said. 

Clark said discussing the tax before it was introduced “might have created a huge run on the property market.”

She expressed little sympathy for foreign buyers who purchased pre-sales years ago, saying they’ve probably already seen the value of their contract rise more than 15 per cent in one year.

But there are also impacts on local residents. Vancouver resident Pat Gardner had a deal with U.S. citizens to sell his downtown condo for $4 million, with a closing date at the end of September. But the buyers balked after learning the new foreign buyer’s tax will cost an extra $600,000.

“They said they are looking to back out of the deal,” he said. “The first comment was they wanted us to pay the tax and drop the price.”

Gardner said he had to lower his price to keep the deal alive.

Housing Minister Rich Coleman acknowledged the tax has received a rough reception.

“Industry, I think, was taken aback and have been a bit grumpy about it,” he said. “The reaction for most of the public I’ve heard otherwise, from calls to the office and emails from the general public, would be that it was the right thing.”

Coleman said he doesn’t anticipate any political impact on BC Liberal Party fundraising from developers angry at the tax who are also party donors.

NDP housing critic David Eby said the NDP will propose amendments to the housing legislation to require that the tax be paid by anyone who does not pay taxes on their worldwide income in British Columbia. Rather than being based on citizenship, this would capture any purchaser who does not file their taxes in B.C. 

© 2016 Postmedia Network Inc

NEW LAW: Real Estate Council of B.C. investigating agent Mike Stewart after email sent to clients Tuesday

Jeff Lee
The Province

A top-selling real estate agent in Vancouver who sent an email advertising how to circumvent the new foreign purchasers’ property transfer tax is being investigated by the Real Estate Council of B.C.

On Wednesday the council said it was aware of a statement by Mike Stewart of Century 21 offering ways people could avoid the new 15 per cent tax, including selling presale contracts to friends or family members who are Canadian citizens or residents.

Such promises are not allowed, according to Marilees Peters, a spokeswoman for the real estate council.

“We’ve contacted this licensee to advise them they need to cease these advertisements and we will be looking into the matter very closely,” she said.

Stewart’s message came just 24 hours after the B.C. government introduced legislation to try to cool Vancouver’s white-hot housing market. It brought in the 15 per cent property transfer tax after discovering that in the month of June alone nearly one in 10 houses in Vancouver were bought by foreigners.

Stewart sent out a mass email to potential clients on Tuesday suggesting he had found a solution to the property transfer tax. A copy of it is posted below.

But he suggested his agency could help foreign clients who have bought pre-sale contracts.

“Most of the presales bought in the last 24-36 months have seen significant increases in value,” according to his email, a copy of which was obtained by Postmedia.

“It is possible in many cases to assign the presale purchase contract to a family member or friend who is a Canadian Citizen or Resident. For those of you who do not have that option, we may be able to sell the presale to a third party at a profit to you,” the email suggested.

It added that people could get more information by following a link, but that page on Stewart’s corporate website has now been taken down.

Calls and text messages to Stewart’s phone were not returned.

However, in an interview with radio station CKNW, he said he wasn’t counselling people to find loopholes in the tax. Instead, he said his advice pertained to pre-sale contracts that aren’t yet registered in the Land Titles Office. 

“It is primarily a specific solution for a very specific situation. I want to be very clear I am not telling anybody about how to avoid a tax that is payable because that is illegal and that is not something that I do and that I am allowed to do,” he said in the interview.

“What this entails is for international buyers who have bought pre-construction, so they have not registered at land titles. According to my understanding, these are exempt from the taxation rules,” he said.

“What we’re just saying is you could just assign it to a family member. Assign means to transfer ownership. This is all before it is registered at land titles, this is all before it is taxable.”

However, his email was widely distributed to local and Canadian potential buyers who had signed up for information with a number of developers who market pre-sale projects.

Stewart said he felt the new tax legislation was “a bit abrupt and unfair” because it penalizes pre-sale contracts for units that are still years away from being built.

“There are people from all over the world from all walks of life who have bought properties that are pre-construction, pre-sale, and that are completing in a few years with the expectation of moving here or settling here and they’ve been suddenly hit with a 15 per cent tax rather arbitrarily,” he said.

However, the Real Estate Council of B.C. says Stewart’s offer was clearly the kind of message the provincial government was prepared for when it drafted the legislation.

“The legislation that the government introduced does include anti-avoidance rules,” Peters said. “We’ve advised all licensees that they need to recommend to their clients to get independent professional advice to find out if their deal will be subject to the property transfer tax.”

Premier Christy Clark also weighed in, saying her government will be auditing sales to make sure offshore purchasers aren’t trying to game the system. She chastised real estate agents who are advising clients to re-assign their pre-sale contracts to Canadian citizens to avoid the tax.

“No they should not be doing that,” she said Wednesday.

“And they should know, and be informing their clients that every single one of these transactions could be audited. And we have an audit team ready to go to make sure every one of these transactions that was on the table and closes before Aug. 2 gets a very close look and anyone trying to find loopholes is going to find quickly those loopholes don’t stand up.”

However, NDP housing critic David Eby says he doesn’t think Stewart did anything wrong, especially since he was talking about pre-sales contracts. He said the dispute helps to illustrate loopholes the NDP warned the Liberal government were in the legislation.

“It is true you can assign a pre-sale contract without paying the tax. It is totally clear in the legislation that the tax doesn’t kick in until the title is registered,” Eby said. 

“I don’t think it is OK. It demonstrates the flaws in the government’s proposal.”

Stewart told CKNW that his overseas clients are already backing away.

“A lot of them have decided to buy elsewhere because of the tax. A lot of people have put purchase plans on hold, pretty much indefinitely, because of the tax,” he said.

“There are a lot of people consulting with their accountants and their lawyers and realtors like me to see what their options are. We’re sort of working through some solutions for our clients right now.”

From the Real Estate Council’s view, would-be buyers still need to do their due diligence.

“We advise all consumers that before they enter into any transaction that is promoted to them as a measure to avoid taxes that they should obtain independent professional advice,” Peters said.

On his website, Stewart bills himself as a “top Vancouver realtor” since 2005 and that he has been a member of the Real Estate Board of Vancouver’s Medallion Club since 2007 as well as a top Century 21 realtor since 2006.

© 2016 Postmedia Network Inc.

Frances Bula and Wendy Stueck
The Globe and Mail

Published Thursday, Jul. 28, 2016

A new tax on real estate purchased by foreign buyers has set off shock waves through the B.C. real estate sector, sending clients and realtors scrambling to close deals before the new tax kicks in and raising concerns it could scupper millions of dollars’ worth of deals and hurt the provincial economy.

n a letter on Wednesday to Premier Christy Clark, Cressey Development Group president Scott Cressey warned that it expects to see buyers – half local, half foreign – rescind on $20-million worth of sales contracts by Friday.

“The resident buyers who are rescinding are concerned that this new taxation might destroy the confidence in the real estate market,” Mr. Cressey said in the letter, a copy of which was obtained by The Globe and Mail.

And he warned that banks will likely want to do audits of all projects under construction in the Lower Mainland to determine whether financing – which depends in part on presales of units – can continue.

In a separate letter to Ms. Clark, also obtained by The Globe, a construction company spokesman warned that the new tax could cast a pall over the construction sector – one of the province’s biggest employers.

“The imposition of this foreign buyers tax is a real threat to the state of development in the Greater Vancouver Area and thus a threat to employment within the construction industry,” said Doug MacFarlane, president of ITC Construction Group.

Mr. MacFarlane noted in his letter that ITC employs more than 2,500 people and currently has 20 projects under construction.

He also reminded the Premier of his company’s support, saying, “ITC has been a big supporter of you and the B.C. Liberals” through subsidiary companies.

Ms. Clark announced on Monday that buyers of Metro Vancouver real estate who are foreign nationals or foreign-controlled corporations would have to pay an additional 15 per cent property transfer tax beginning Aug. 2. The surprise move followed months of concern about skyrocketing real estate prices in Vancouver and elsewhere in the Lower Mainland.

For condo developers, the tax is a concern because it might dampen presales and therefore financing, as banks require some projects to have as many as 70 per cent of their units sold before the banks will provide financing.

The new tax “sends a signal to buyers that they’re subject to a lot of capricious new regulation,” said Jon Stovell, chair of the Urban Development Institute. “It sends a lot of negative messages in this whole climate of blaming the buyers,” he added.

Condo marketer Bob Rennie said foreign buyers will likely absorb the new tax after an adjustment period. But he is still not happy about the new tax, saying it doesn’t target speculative activity.

A 15-per-cent tax may do little or nothing to discourage people who are intent on moving capital from one country to another, said B.C. real estate lawyer William McCarthy.

“Anybody who is moving assets or moving capital around the world for any reason than perhaps wanting to live in an area, they are the masters at this,” said Mr. McCarthy, the past-president of the Real Estate Institute of Canada.

People might try to avoid the tax by going through a relative or other means, he added.

Notaries have been peppered with calls from realtors and clients wanting to know if deals slated to close next month or later can be pushed through before Aug. 2, said Tammy Morin Nakashima, president of the Societies of Notaries Public of BC.

And buyers and sellers can expect higher costs for a quick turnaround.

“To accommodate those kinds of requests, it doesn’t give us the ordinary lead time and processing time, so that means people are going to be doing double and triple time to bump a file forward in that short a time,” Ms. Morin Nakashima said on Wednesday.

Notaries will “for sure” charge additional fees to provide that service, she added.

In an e-mail, Liza Aboud, vice-president of the Land Title and Survey Authority of British Columbia, said more than 95 per cent of applications to the land title office are filed electronically and that a potential increase in volume resulting from the new tax “should not have any effect.”

Copyright 2016 The Globe and Mail Inc.

Canada’s national housing agency says evidence of problematic conditions in the country’s real estate market as a whole has risen from weak to moderate, with Vancouver’s risk rating boosted to high.

The Vancouver Sun

TORONTO — Canada’s national housing agency says evidence of problematic conditions in the country’s real estate market as a whole has risen from weak to moderate, with Vancouver’s risk rating boosted to high.

In its latest report, the Canada Mortgage and Housing Corporation said that in addition to Vancouver there was also strong evidence of imbalances in Toronto, Calgary, Saskatoon and Regina.

Meanwhile, CMHC found that housing markets in Edmonton, Winnipeg, Hamilton, Montreal and Quebec have exhibited moderate evidence of imbalances.

But overall evidence of problematic conditions has decreased in Ottawa since the previous CMHC assessment.

The agency says imbalances occur when overbuilding, overvaluation, overheating and/or price acceleration depart significantly from historical averages.

CMHC’s housing market assessment report is intended to be an early warning system to alert Canadians about problematic conditions developing in the country’s real estate markets.

It covers 15 regional markets and the national housing market as a whole.

© 2016 Postmedia Network Inc.