* Finance Minister hopes for self-discipline in markets
* Says no bubble in Toronto and Vancouver
By John Tilak
WHITBY, Ontario, Oct 4 Pressures in the Toronto
and Vancouver housing markets are moderating, Canadian Finance
Minister Jim Flaherty said on Thursday, with neither a bubble
nor a hard landing in sight for the country's property market.
"I don't think there is a bubble, or a danger of a bubble in
Toronto and Vancouver. I'm actually comfortable with the fact
that we've seen some moderation in pressures in that market,
both of those markets and across the country," Flaherty told
"I hope the market will discipline itself ... Some
modification is better than having some sort of hard landing."
Mindful of the U.S. housing market crash that triggered the
global financial crisis, Flaherty in June tightened rules on
government-backed mortgages for the fourth time in four years.
Industry reports released on Wednesday showed Canada's
post-recession property boom is displaying fresh signs of
weakness due in part to the mortgage-rule changes, with sales
volumes dropping even as average prices rise.
In Vancouver, Canada's most expensive market, average prices
posted modest decreases in the third quarter, particularly for
In Toronto, average house price gains ranged from 2.7
percent to 5.9 percent, while demand fell modestly.