A strongly worded warning on Canadian housing prices from the EIU and backed up by comments from the OECD.

Canada banks: Piling up profits | Economist Intelligence Unit (reg’n required)

The OECD has taken notice of Canada’s housing bubble, advising the Bank of Canada to begin hiking interest rates with a target of 2.25% by the end of 2012, up from 1% where it has stood since September 2010. The fear is that Canadian homebuyers are borrowing more than they can sustain once rates turn higher. This situation could result in a real-estate bust and massive mortgage defaults in a replay of the US sub-prime crisis in 2008.