Canada won’t interfere in housing market — for now: Flaherty
The Canadian government has no plans for now to clamp down on the housing market even though prices are rising again, Finance Minister Jim Flaherty said on Monday, but he pledged to investigate whether the price uptick looks to be more than temporary.
But a London-based group is now predicting construction output, led by housing, is set to grow by about 4% over the next year, despite the fact the industry faces labour shortages and financing concerns.
“It’s not stunning growth but it’s solid growth. Over the year, based on this survey, the construction industry will underpin the economy in Canada,” said Simon Rubinsohn, chief economist with the Royal Institute of Chartered Surveyors which interviewed dozens of senior managers in the largest construction firms in the country.
The news comes as Mr. Flaherty continues to keep a close watch on the Canadian housing industry which is showing signs of a recovery. The finance minister said he will be talking to developers about whether the housing sector needs more regulation as prices continue to rise in most markets and sales recover after a dismal 2012.
- Don’t look now Mr. Flaherty – here’s another shot in the arm for real estate (business.financialpost.com)
- Finance minister wary of housing market overheating (calgaryherald.com)
- Flaherty won’t clamp down on borrowing, but wary of home price increases (ctvnews.ca)
- Canada won’t interfere in housing market – for now: Flaherty (business.financialpost.com)
- Canada won’t clamp down for now as housing prices rise again (theglobeandmail.com)
- Flaherty says on look-out for housing bubble (metronews.ca)