Finance Minister Jim Flaherty said record Canadian home prices partly reflect a stabilizing economy and don’t constitute a bubble “right now,” even though the government is prepared to act if gains become excessive.
Flaherty, in an interview today, said recent price increases for homes in Canada are due to a “confluence” of factors including low interest rates, an improving economic outlook and a stabilizing job market.
“We always watch the housing market to make sure that we do not see the development of an asset bubble,” Flaherty, 59, said during an interview in his office in Ottawa. “There would have to be clear evidence of an asset bubble in residential real estate in Canada, which there is not right now,” for the government to take steps.
Read the full article by Theophilos Argitis, “Canada’s Flaherty Says There Is No Housing Bubble ‘Right Now‘” at Bloomberg.com (Dec 21, 2009).