The moaning

Nov 17 20:11 2019 Print This Article

During that godawful election campaign the cowboy premier argued the mortgage stress test is unfair to Calgary and Edmonton. “One of the reasons why homes are less affordable in Alberta today is because of unfair rules imposed by Ottawa to deal with the overheated real estate markets in Toronto and Vancouver,” thundered Jason Kenney.

The federal Cons agreed. Andrew Scheer promised to ‘modify’ the rules setting minimum mortgage hurdles. And so the Conservatives swept the West. Once again real estate got real political.

So what’s the situation? Are Alberta houses unaffordable? Would gutting the stress test for certain regions of the country make houses accessible? Is Trudeau likely to do this to help keep the prairie Liberation Army at bay?

Hmm. The latest numbers tell a different tale. New house prices in Calgary are falling – down about two and a half per cent over the past year. Resale prices have been on the decline for five years. Sales of detacheds year/year is negative. But that hasn’t halped sales much – they’re at a 23-year low.

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About Article Author

Greater Fool

Author, Garth Turner has been a member of the Canadian Parliamant for nine years, serving as Member of Parliament, Cabinet Minister (in charge of Canada Revenue Agency), national leadership contender (Progressive Conservative Party of Canada), House of Commons Standing Committee member and chairman (Consumer and Corporate Affairs, Finance), Special Advisor to the Leader of the Official Opposition. He is a member of the Privy Council of Canada. In addition, Garth is an ambitious entrepreneur – founder and CEO of Canada’s largest independent producer of network television, providing programming to CTV, Global, YTV and others. He founded and successfully operated chain of six community newspapers in Ontario as well as founded and operated eco-tourism and hospitality company aggregating and restoring heritage properties.

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