The Financial Post reports that Canadian Finance Minister Jim Flaherty raised the option of government intervention during a press conference in Ottawa. However, he believes that such action will not be required in the near future.
‘There's some indication of some softening in the housing market in Canada recently,’ Flaherty said. ‘We watch the housing market carefully, and we are prepared to intervene if necessary. Having said that, we're not about to intervene in the housing market now.’
Canada did not experience the level of tumult experienced in the U.S. housing market. However, the Canadian government tightened mortgage rules over the past few years when it appeared the housing market was overheating. The new concern is the opposite effect: Newly released data showed falling average sales prices for homes and only a slight increase in existing-homes sales during December 2011, which could signal a cooling off of the Canadian housing market.
(Photo courtesy Joshua Sherurcij)