OTTAWA - Canada Mortgage and Housing Corp. says the country's housing markets remain “highly vulnerable” with evidence of moderate overvaluation and price acceleration.

The national housing agency says in its quarterly housing market assessment that markets in Toronto, Hamilton, Vancouver, Victoria and Saskatoon are highly vulnerable.

The housing market assessment gauges the overall level of risk by evaluating four problematic conditions: overheating, price acceleration, overvaluation and overbuilding.

It noted that despite the recent easing in Toronto's resale market, it detected moderate evidence of price acceleration with strong growth in home prices among all housing types.

CMHC says Vancouver's housing market remained highly vulnerable, with evidence of moderate overheating and price acceleration, and strong overvaluation.

In its housing market outlook, which was also released today, CMHC says that after a boost this year, housing starts are expected to decline by 2019, but remain close to the average level from the last five years.

Sales in the existing-homes market are also expected to decline relative to the record level set in 2016, while price growth is expected to slow, CMHC says.