2012.05.08 16:10:38 MARKET TALK: Canadian Housing At Risk Of Overheating

10:10 (Dow Jones) News that Canadian housing starts surged 14% in April to 244.9K units annualized, the highest level since Sept '07, puts to rest any doubts that Canada's housing market is at risk of overheating, at least in certain sectors and cities, says BMO Capital Markets. Earlier "bubble-mongering" seemed overplayed given that housing starts were running only slightly above household formation, which is about 180K on average for the past three years, BMO says. "But that is no longer true with starts now moving well above underlying demand, and accelerating in recent months," it says. "This is an important report: There's little question now that Canada's residential construction sector is heated, with the big-city condo market boasting the highest temperature." (don.curren@dowjones.com) Call us at (212) 416-3100 or email patrick.sullivan@dowjones.com (END) Dow Jones Newswires May 08, 2012 10:10 ET (14:10 GMT)