The Wall Street Journal reported last week on the booming Canadian housing market which has seen property value increase for the seventh month straight. While the future of the market remains unclear (there is fear we are in a bubble about to burst), the Journal does highlight the strengths of the political culture in Canada's largest cities that led the country to a housing recovery while the US market continues to drag.
"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. Economists expect that growth to continue when January figures are released Monday.
Not everyone agrees that Canada's recent price increases are cause for concern. Bubble skeptics say they aren't yet seeing other symptoms of froth such as speculative buying, looser lending standards or a run-up in land prices. Canada's central bank and finance ministry say there isn't currently any reason for alarm. "
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Wall Street Journal