Canada Mortgage and Housing Corporation says nine of the 15 real estate markets it analyzed recently show signs of overvaluation.
It says there are growing signs that house prices in some cities are out of whack with incomes and other economic fundamentals.
C-M-H-C says evidence of overvaluation grew from moderate to strong in Vancouver and Saskatoon, while in Toronto and Quebec City, evidence that house prices are overvalued remained strong.
Edmonton, Calgary, Regina and Montreal all continued to see moderate evidence of overvaluation in the January to April period.
Overvaluation occurs when home prices are so high that they aren’t fully supported by economic fundamentals such as family incomes, mortgage rates and population growth.