Flaherty Says Cooling of Housing Market Would Be a Good Thing

Canadian Finance Minister Jim Flaherty said the government is willing to accept the possibility of slower economic growth in exchange for cooling off the country’s housing market.

Flaherty, speaking on a conference call with reporters today, said he realizes the tougher mortgage rules he announced last week may have a “dampening effect” on the economy and the residential real eatate market.

“We’re prepared to take that risk, quite frankly, because of the greater risk of the development over time of a housing bubble,” he said, adding he’s “very concerned with the condo market in Canada’s largest cities.”

To contact the reporter on this story: Andrew Mayeda in Ottawa at amayeda@bloomberg.net

To contact the editor responsible for this story: Theophilos Argitis at targitis@bloomberg.net

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