Household credit is finally starting to slow.

CIBC Economist Benjamin Tal says that this is a result in a pullback in consumer credit, the “slowest pace of growth since the early 1990s,” according to BNN.

Concern over the state of Canada’s housing market is nothing new. Recently, Finance Minister Jim Flaherty and other high executives warned against high home price and the real possibility of an overheated housing sector.

CMHC, Canada’s housing agency, issued their annual report that defended their business practices, claiming that there was no sign of a market bubble.

However, Tal believes a mild correction should be made.

“We continue to call for a gradual softening in the market, with prices potentially falling by around 10 per cent in the coming year or two,” he said.

According to Tal, while it’s clear that the real estate market is “overshooting” recent signals suggest that market is at a “turning point”.

This is the first time since 2002 that Canada’s consumer credit is growing at a slower pace than in the United States. 

Low mortgage rates have fueled Canada’s housing boom, but they have also raised concerns over record-high household debt.

Many consumers have been taking advantage of the cheap lending costs. Higher rates could push many households beyond their limit and out of the market. This could lead to a drop in prices, especially in the over-development condo sector.

Yesterday the Canada Mortgage and Housing Corporation reported housing starts jumped 14 per cent in April, mainly for multi-unit construction.

Some economists are pointing to this as proof the housing market is heating up, especially in the condo segment in major cities.

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Nicole Siena is an intern for the Toronto Standard. Follow her on Twitter at @nicolesiena

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