Finance Minister Jim Flaherty will meet with developers to determine whether future interference in the housing industry may be needed.
“Some of the economists this morning suggested that I have some conversations with some people in the building industry – some more conversations – because of what we’re seeing in certain parts of the country: a re-acceleration of housing prices,” Flaherty told the media following a meeting with private economists.
It’s no secret that many believer Flaherty has been too active in trying to control the housing industry in Canada. Perhaps more consultation with those involved in the industry will reign in the minister’s aggressiveness. However, for the time being, he will hold off on interfering.
“I do speak to people regularly in the business and I’m going to do more of it now, because I want to ensure that this isn’t just a temporary bubble,” Flaherty said. “One theory is that we’re pulling forward housing sales by the reality that eventually interest rates will go up and so that some people who perhaps should be waiting a bit are going ahead and buying, but this is speculation and we’re going to have to look into it more."
As for right now, however, Flaherty has no plans to interfere,
"But I have no intention of interfering in the market at the time being.”