Generally, when there is a rapid rise in asset prices, including house prices, one should always ask whether they have increased too far, too fast. In the Bank of Canada's view, it is premature to talk about a bubble in Canadian housing markets.
Recent house price increases do not appear to be out of line with the underlying  4  BIS Review 4/2010  supply/demand fundamentals. Moreover, with housing starts below long-term demographic requirements, inventories are still declining.