TORONTO — The federal government is creating a working group on housing with the Ontario and British Columbia governments as well as officials from Vancouver and Toronto.
Finance Minister Bill Morneau says overall, the housing market is "sound," but since the financial crisis pockets of risk have emerged.
He says it's important that all levels of government work together on this issue because taking action on the Vancouver housing market could have unintended consequences on people in Calgary or Halifax, for example.
The working group has not yet been formed, but Morneau says it will meet through the summer to review factors that affect housing supply and demand, affordability and stability of the market.
Morneau says while the government has already taken steps to protect borrowers and lenders, more steps can be taken, if warranted, to help maintain a stable housing market.
The Bank of Canada has warned that housing prices in Vancouver and Toronto are rising at an unsustainable pace that is beyond local economic fundamentals.
