Quote of the day.

“The market is out of balance,” said David Wilkes, president and chief executive officer of BILD, an industry group for about 1,500 companies in the Toronto region. “We join other industry groups in calling on the federal government to revisit the stress test and allow a longer amortization period for first-time buyers. "

It was responce to report released Friday  that After years of frenzied price increases, sales of new homes in Canada’s biggest city sunk to the lowest in almost two decades in 2018 and the supply of unsold condos piled up.Sales of new homes fell to 25,161 from 2017, according to the Building Industry and Land Development Association, which used data from Atlus Group.  That’s the lowest annual number since Toronto-based Altus started tracking the figures in 2000.

Single-family homes showed the biggest decline, plunging 50 percent to 3,831 from 2017 and 74 percent below the 10-year average. Condos sales fell 38 percent to 21,330, but only 4 percent below the 10-year average.

While the benchmark price of a new single-family home slumped 6.7 percent to C$1,143,505 in December on the year, condo prices surged 11 percent to C$796,815 ($605,000), according to BILD’s report.

So now executive offices of BUID demands that government should allow people to pile on more debt to spur stagnating market. Brilliant. That surely will bring market into balanve.