Canada may dodge housing hard landing, Flaherty says #yeg #yegre

Canada may dodge housing hard landing, Flaherty says
Thu Oct 4, 2012 4:44pm EDT By John Tilak

WHITBY, Ontario (Reuters) - Pressures in the Toronto and Vancouver housing markets are moderating, Canadian Finance Minister Jim Flaherty said on Thursday, with neither a bubble nor a hard landing in sight for the country's property market.

 "I don't think there is a bubble, or a danger of a bubble in Toronto and Vancouver. I'm actually comfortable with the fact that we've seen some moderation in pressures in that market, both of those markets and across the country," Flaherty told reporters.

"I hope the market will discipline itself ... Some modification is better than having some sort of hard landing." Mindful of the U.S. housing market crash that triggered the global financial crisis, Flaherty in June tightened rules on government-backed mortgages for the fourth time in four years.

Industry reports released on Wednesday showed Canada's post-recession property boom is displaying fresh signs of weakness due in part to the mortgage-rule changes, with sales volumes dropping even as average prices rise.

In Vancouver, Canada's most expensive market, average prices posted modest decreases in the third quarter, particularly for condos. In Toronto, average house price gains ranged from 2.7 percent to 5.9 percent, while demand fell modestly.



(Writing by Louise Egan; Editing by Jeffrey Hodgson) © Thomson Reuters 2012. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Thomson Reuters journalists are subject to the Editorial Handbook which requires fair presentation and disclosure of relevant interests.

Comments

  1. plumberAUNovember 28, 2012 at 5:16 PM

    Condominium living has been a swiftly growing market, as more individuals seek to live in urban environments, near to their jobs.

    Condo Investment

    ReplyDelete

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