More denials of housing bubble in Canada

The debate continues in Canada over the successful recovery of the housing market.

Real estate in Canada is riding high at the moment with the year finishing on a record breaking month for residential property sales. December figures showed a growth of more than 70 per cent in relation to December 2008. This information is stoking fears of a property bubble among various industry commentators.

A spokesman for the Canadian Real Estate Association (CREA) said that although last month's figures were exceptionally high, last year's overall figures showed a decline of more than 10% from the high levels seen in the boom time of 2000.

Last week, the Bank of Canada suggeted that the situation was due to demand far outstripping supply but that as the economy recovered and interest rates increased so the market will cool somewhat.

The Canadian government is, it seems, most concerned and is currently looking at ways to stem what it considers to be an impending hot market.