How is it that our stock markets and house prices look like this is the best of times?
The mortgage insurer's predictions would look far less alarming if it used the same measure of house prices as other forecasts.
"We are concerned that some damage may already have been done."
House prices are set to fall by up to 18% over the next year, CMHC predicts.
"Housing affordability has become a serious problem in our major cities."
The objective of that policy is to reduce mortgage lending. It means that a potential home buyer who can comfortably afford the costs of buying a home (based on their actual mortgage interest rate, which will usually be less than three per cent) might not be able to get financing, because of a new, very high "stress-test" hurdle (using an interest rate that is currently 4.64 per cent, and far above actual market rates).
Canadian house prices would drop 26 per cent on average if oil fell to $35 a barrel and stayed there for five years, says