..... that local real estate and home builders associations would use to describe CMHC’s analysis.
Confusing, inaccurate and out of date would be closer to truth, they say.
“The main points of contention are the CMHC analysis that Regina’s market is overvalued and there is evidence of price acceleration and overbuilding,’’ the Association of Regina Realtors said in a statement Thursday. “The report does not reflect current or even recent conditions.”
The association’s home price index (HPI), which is adjusted for differences in housing type, inflation and other factors, indicates that resale housing prices have been falling for the past two-year period, the association said.
“It is perplexing that the methodology that CMHC is using in this report would result in this (high risk) classification when it is broadly known and supported by sales data that resale housing prices have been coming down for the past two-year period,’’ said Gord Archibald, CEO of the association.
“(A)n impression is being created ... that is contrary not only to current market conditions, but also to those which have existed for over two years now,” Archibald added.
Stu Niebergall, president and CEO of Regina & Region Home Builders’ Association, said the Canadian Home Builders’ Association raised concerns about the HPAA to CMHC during its spring meeting.
“Confusion remains about how CMHC compiles the individual factors used to determine its headline result for each market, and also about the basis of the ‘industry productivity’ measure,’’ Niebergall said in a statement.
Regina housing starts were down 47 per cent in July and 23 per cent in the first seven months of 2015, compared with the same period in 2014. Existing home sales were down 8.4 per cent in July, while the HPI composite price was down 3.3 per cent from July 2014 and 5.0 per cent over the last three years.