Richard T. Kensington

By the measures of price-to-rent and price-to-income, Canada’s housing market is historically overvalued.

While home prices have been stable and there is a balance between supply and demand, the impact of a housing market crash is difficult to assess since key data is proprietary to the big banks.

Canadian households keep getting wealthier and the good news is that growth of asset values has outpaced that of credit.

Mortgage insurance premiums in Canada will increase by about 15 percent on average for new mortgages, but this is not expected to alter the dynamics of the real estate market.

Last week’s federal budget showed the Harper government is still carefully watching the housing market as it reduces the risk it’s willing to have taxpayers bear.

Canadians’ indebtedness moderated in 2013 unlike any other recent year, supporting the view that policymakers have bigger risks to address in the economy.

Despite falling sales activity, house prices in Canada are rising driven by tighter supply conditions in certain large markets.

Canadian housing data for November suggests a balanced and well-behaved housing market. It’s almost as if no news is good news for the housing market, which continues to be under the watchful eye of the federal government.

Canada’s residential mortgage market is closely tied to trends in the housing market and the broader economy, according to a report prepared by Will Dunning, chief economist for the Canadian Association of Accredited Mortgage Professionals (CAAMP).

October’s national home sales fell 3.2 percent, according to the Canadian Real Estate Association (CREA), which released the figures Nov. 15, 2013.