04/27/2016 01:39 EDT | Updated 04/28/2017 05:12 EDT

Canadian Housing Overvalued In Vancouver, Other Canadian Cities: CMHC

Sixty per cent of the housing markets in this study show signs of overvaluation.

TORONTO — Canada Mortgage and Housing Corporation says there is mounting evidence that house prices in a number of Canadian cities are out of whack with incomes and other economic fundamentals.

The latest report from CMHC says there is evidence of overvaluation in nine of the 15 real estate markets included in the research.

Overvaluation occurs when home prices are so high that they are not fully supported by economic fundamentals such as family incomes, mortgage rates and population growth.

The national housing agency says evidence of overvaluation grew from moderate to strong in Vancouver and Saskatoon between January and April.

In Hamilton, evidence of overvaluation increased from weak to moderate over the same three-month period.

Edmonton, Calgary, Regina and Montreal all continued to see moderate evidence of overvaluation, while in Toronto and Quebec City, evidence that house prices are overvalued remained strong.

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