BuzzBuzzHome, February 8, 2010 – Canada’s finance officials say they’re watching home prices carefully, but is the rest of the world starting to get antsy about Canada’s quick turn around?

If needed, in December 2009, the finance minister outlined steps he can take to cool things down and last month the central bank said it is watching the booming market with “vigilance, but not alarm.”

According to the Wall Street Journal:

“As the U.S. struggles to get out of its housing slump, its neighbor to the north faces a different challenge: Canada’s housing recovery has been so rapid that some here are worrying about a bubble.

Last Wednesday, a housing-price index for Canada’s six biggest cities posted its seventh straight monthly gain, showing home prices in November are now back to their prerecession peak. Another broader measure shows the average home price in 2009 hitting a record. Home building has picked up too, with housing starts in December jumping to their highest level since October 2008.”

Garth Turner sees trouble ahead… “It’s a mania. It’s going to end badly…”

Of course, not everyone sees the recent price increases as a cause for concern, as many of the traditional symptoms have not been seen yet, such as “speculative buying, looser lending standards or a run-up in land prices.” One of the biggest non-skeptics is the Bank of Canada who sees no immediate alarms going off.

“For now, the housing boom shows no sign of abating,” says the Wall Street Journal.

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