ARR CEO Comments on CMHC's latest HMA

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Gord Archibald comments on CMHC’s latest HMA

Posted on July 28, 2016July 28, 2016 by Regina REALTORS®
Association of Regina REALTORS® Inc. Chief Executive Officer, Gord Archibald comments on the latest Housing Market Assessment (HMA) by Canada Mortgage and Housing Corporation (CMHC).

When asked by Bruce Joshnstone from the Regina Leader-Post about the latest quarterly report from CMHC that still considers Regina and Saskatchewan to have “strong evidence of problematic condi- tions due to overvaluation and overbuilding”, Gord’s response was:

“Bruce — again here, this is a broken record that this CMHC report plays over and over.

Regina is the only market that has been included as either being high risk or having problematic conditions in each and every HMA report that CMHC has been issued since its inception through various types of market conditions — a seller’s, transition to a buyer’s market, a buyer’s market and a balanced market.

I’m not sure where the sweet spot needs to be locally to be classified other than having “problematic conditions” — we’re in the same classification along with Vancouver and Toronto which is difficult to fathom. Sales are oc- curring at a steady pace similar to recent years, inventory levels have been coming down and prices have been increasing only marginally since the beginning of the year. It’s very perplexing.

“It’s very perplexing”

It’s an example of a national methodology being applied at a local level without the “on the street” practical per- spective. We’re concerned that the report does not accurately represent what’s happening in the market.

We’ve been encouraging CMHC to use the MLS® Home Price Index as a metric within the model rather than only average price and the Stats Canada new home price index. It’s a much more accurate measure of price trends and is typically much less than average price.”

Mr. Archibald’s comments are in response to CMHC deeming the Regina market “to be high risk” or having “problematic conditions” in every HMA report that CMHC has issued.

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CMHC does not use the MLS® Home Price Index (HPI) when determining the HMA.

See the full article published by the Regina Leader-Post here. ( gages/regina-saskatoon-housing-markets-still-suffering-from-overvaluation-and-overbuilding- cmhc-says)

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