Canada House Prices Down? Jim Flaherty Says That's A Good Thing

Posted: Updated:
Print Article
JIM FLAHERTY HOUSE PRICES CANADA
Finance Minister Jim Flaherty is not worried about a housing collapse, saying he is happy he has helped cool the market with the latest round of stricter mortgage rules. (The Canadian Press/Jake Wright) | CP

OTTAWA — Finance Minister Jim Flaherty is not worried about a housing collapse, saying he is happy he has helped cool the market with the latest round of stricter mortgage rules.

The finance minister says he is also encouraged Canadians are paying down their mortgages and credit cards, and taking on less debt.

The housing slowdown was a big part of the disappointing economic downturn recorded the third quarter, with the sector falling 3.5 per cent annualized.

STORY CONTINUES BELOW SLIDESHOW

What $1 Million Will Buy You Across Canada
of
Share
Tweet
Advertisement
Share this
close
Current Slide

That was caused in part because Flaherty made mortgage payments more expensive in July by dropping the maximum amortization period to 25 years, but the minister says he has no regrets.

A soft landing in housing is better than a boom followed by a bust, he says.

Overall, the country's economy advanced a snail's pace of 0.6 per cent, about half the expectation of the Bank of Canada.

Flaherty says he believes Canada is on track to achieve modest growth in the next fiscal year, but warns Canadians not to expect dramatic growth.

Around the Web

Calgary leads Alberta home prices

Low house prices not all bad news, CIBC says

Canada home prices seen falling, but no US-style collapse: poll

Will inflation keep boosting house prices? Don't bet on it

Canada September New House Price Index Report (Text)

 
Sponsored Feature