By Gord Price
The economists are not impressed:
“I hate it. To be very clear, I think it’s really bad economics,” said Tom Davidoff of the University of B.C.’s Sauder School of Business.
“Big picture, it’s a step in the wrong direction. We have too much demand chasing too little supply.
Davidoff said the move could be an attempt by government to prop up a real estate market that is at risk of a sharp decline in 2017.
Given that the provincially backed loan program that matches up to $37,500, or five per cent of the home’s purchase price, applies to houses worth less than $750,000, how much effect will it really have on the most over-heated markets in Metro Vancouver?
In other words, isn’t this really another Liberal program to extract wealth from the Lower Mainland and target it to assist those elsewhere in the province?
And, in this case, is that so bad?