From the Montreal Gazette – Can’t say that I don’t completely agree with the analysis.
While the Bank of Canada made it clear yesterday that it doesn’t see a housing bubble in this country yet, it also kept the spotlight on Finance Minister Jim Flaherty as the official who ought to be held responsible for ensuring that this remains true.
Speaking in the wake of a surprisingly strong home-construction report for December, central bank advisor David Wolf said it’s “premature” to talk about a bubble in Canadian housing markets.
But he pointedly noted that there’s no chance of an early jump in interest rates to cool the country’s red-hot housing market. This would also throw cold water on the whole economy, including many sectors that are struggling.
Actually, the trend so far is merely a vigorous return to something like normal.
Resale prices have rebounded to near their pre-recession peak and now home construction is expanding rapidly in response to reviving prices, helping to create jobs and ease a shortage of homes for sale.
Who thinks Flaherty reign would be better if it came to an end sooner rather than later?
