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The hot Vancouver housing market is showing signs it is becoming overheated, while Toronto continues to display strong evidence that home prices are overvalued, Canada’s federal housing agency said on Wednesday.

On the whole, the Canada Mortgage and Housing Corporation (CMHC) said there was strong overall evidence of problematic conditions in the country’s housing market, the same threat assessment it gave in its last quarterly report in April.

The housing agency said there were moderate signs of overheating in Vancouver, up from a rating of weak in its last report, as town homes and apartments have drawn high demand from first-time buyers, driving up prices and leading to bidding wars.

Despite record construction activity, the inventory of unsold homes remains tight, CMHC said. It maintained its overall rating that Vancouver is showing strong signs of problems in the market.

Activity in Vancouver slowed in the latter part of last year after the provincial government introduced a tax on foreign buyers last August to address concerns that investment was unsustainably stoking the market. But prices in the west coast city have since rebounded.

In Toronto, where provincial authorities in April also imposed a foreign buyers tax and a number of other measures to rein in the market, prices continued to show strong evidence of being over valued.

The rise in prices cannot be explained by economic drivers alone, the report said, pointing to annual average price growth of 26.4 per cent in the first quarter.

Recent data has shown Toronto home sales fell for the third month in a row in June, while the pace of average annual price gains cooled as buyers waited on the sidelines to gauge the impact of the government’s measures.

Overall, CMHC found strong signs of problems in five of the 15 major cities it looks at and moderate signs of problems in another five. That was unchanged from April.

Provided by: Globe & Mail

Simon Fraser
Market Update

Simon Fraser Condos

Altaire by Polygon

Altaire built in 2008/2009 reaches higher then any other condo building in Metro Vancouver offering panoramic views.

Novo I by Intergulf

Novo I built in 2007 known for the amazing sight lines and views from most units and balconies up to 1000 sq ft.

Novo II by Intergulf

Novo II built in 2007 known for the amazing sight lines and views from most units and balconies up to 1000 sq ft.

Aurora by Polygon

Aurora built in 2006 with 103 condos featuring 36 unique floor plans ranging from 715 sq ft to 1500 sq ft.

One University by Millennium

One University built in 2005 is UniverCity's flagship building with luxury homes featuring semi private elevators.

Harmony by Polygon

Harmony built in 2005 was the first condo development at Univercity & as a result offers a unique setting & views.

Serenity Townhomes by Polygon

Serenity is a collection of 2 bedroom townhomes of 1100 sq ft ranging to 4 bedroom 2000+ sq ft townhomes.

The Hub by Liberty Homes

The Hub built in 2009 is set atop Nester's Grocery and steps from High Street giving these homes an urban feel.

Verdant by VanCity Enterprises

Verdant is a two storey town home building built with environmental design and stylish living spaces which complement the modern exterior of these SFU homes.

Origin by Porte Development

Origin is designed by GBL Architect & BYU Interior Designs, developed by Porte Development Corp. and marketed by Red Dot Real Estate.

Nest by Mosaic

Located on UniverCity High Street across from the new University Highlands elementary schools this refreshing building will add further depth to a growing community.

Highland House by Liberty Homes

A 12-storey concrete high-rise development and targeted towards Rental Investors and First-Time Condo Buyers.

Lift by Porte Development

Lift will be a wood frame building comprising of 56 homes. Building technologies, environmental features, and price points should be similar to Origin.

Altitude by Hungerford Group

Altitude will be a 2 tower development comprising of a 12 and 14 story building with a total of 210 strata units.

CentreBlock by Liberty Homes

CentreBlock at UniverCity atop Burnaby Mountain is the latest condo project with sales commencing early 2014. .

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