On the overvaluation front, the CMHC says there is moderate or strong evidence of that happening in Vancouver, Edmonton, Calgary, Saskatoon, Regina, Hamilton, Toronto, Montreal and Quebec City.

The housing agency looks at housing markets to gauge their health based on four factors:

• overheating — when demand is significantly and persistently outpacing supply
• overvalued — when prices are higher than they should be based on economic fundamentals
• accelerating — when house prices are increasing faster than household costs of living are
• overbuilding — when supply of new homes significantly outpaces demand.

The agency rates each market on a colour coded scale where green means there is little evidence of that factor, yellow means there is moderate evidence of it and red means there is strong evidence of it.

Aside from overvaluation in pockets, the CMHC's assessment sees little cause for concern nationally. "Overheating and acceleration in house prices are not a concern at this time," the CMHC said.