American-based agency Fitch says house prices are overvalued by approximately 20 per cent in real terms across Canada, with regional variations.
But in releasing its ratings on Monday, it said Alberta’s market is overvalued by 15 per cent.
Fitch said rises in prices have remained with small corrections since 1996, and specifically since 2008 have risen when underlying fundamentals suggest that growth is unsupportable.
It said the Ontario market is overvalued by 21 per cent, Alberta by 15 per cent, British Columbia by 26 per cent and Quebec by 26 per cent.
The Fitch Ratings “exposure draft” details a “new loan-level model for estimating losses on prime Canadian residential mortgage pools.”
Prices in Calgary’s resale housing market continue to rise as an all-time average sale price record was set in February, dominating the mark which has stood since the boom in July 2007.
According to the Calgary Real Estate Board, the average MLS sale price for a single-family home during the month was $518,452, up 10.30 per cent from last year while the average price for overall MLS sales in the city was $457,120, up 7.46 per cent year-over-year.
The previous single-family home record high for average sale price was $506,671 in July 2007 and it was $452,589 in July 2007 as well for overall MLS sales in the city.