“It will mean that some people will not buy into the market. It will also mean that some people will buy less into the market… so they’ll buy a less expensive home, or less expensive condominium. … Good! I consider that desirable.”
– Jim Flaherty, Canadian Minister of Finance, April 2012 news conference regarding mortgage condition tightening, as recapped on Global TV News, 18 Dec 2012 [hat-tip Greenhorn for the archived video clip]
Not less of a home, note, but a less expensive home.
This is, indeed, desirable.
It’s all about the FTB from the GOC
The idea of price versus value went out the window with steady appreciation. Who cares about price when the appreciation makes up for any short fall in “value” every day. Each brick, or lump of stucco is a glistening jewel ready to ooze appreciation, social status and a future so bright that being humble is almost impossible. A classic mania that forgets to examine its foundations with its own rockstars and legions of groupies.