Flaherty discounts fears over housing, says correction a ‘healthy’ development

OTTAWA – Finance Minister Jim Flaherty says Canada’s housing market is unfolding in a healthy manner and has no plans to intervene.

While some observers are expressing fears the bubble is about the burst, Flaherty says the market is responding the way he envisioned when he tightened lending rules last year.

He says he is pleased that the condo market in big cities, particularly Toronto and Vancouver, has moderated.

The finance minister made the comments in an interview from France, where he was announcing government financing for the construction of a visitor’s centre at the Vimy Ridge war memorial.

Flaherty, who took part in a G7 meetings over the weekend, also expressed concern about backsliding among major economies on efforts to rein in deficits, saying governments need to get their fiscal house in order or else, when the next crisis occurs, they will not be in position to respond.

From Canada’s perspective, he says the government will not change course and is committed to balancing the budget in 2015.