There you have it! Flaherty just officially admitted to the existence of a bubble by suggesting that there were indications of the beginning of a bubble. If you still don't get it, then this quote by Pacifica Partners will clarify the above statement: "...any stronger statement as to the existence of a bubble would be unlikely since it is common practice for policy makers to attempt to "talk down" fears."
Still not convinced? Please consider when Bernanke famously said in 2005 that there is no housing bubble in the USA as housing reflects strong economic fundamentals.
By the way, Pacifica Partners believes that the real estate in Toronto is overvalued by 33%, in Vancouver by 36% and in Montreal by 37% as compared to rents. If you are still not convinced that Canada has a housing bubble please review my following articles:
Is there a housing bubble in Toronto?
Is there a housing bubble in Canada?
Is there a bubble or not? What do people think?