UPEI economics professor Jim Sentance says there were some items in the federal budget that could help Islanders. (CBC) Offering incentives to first-time home buyers could drive up demand — and with it, prices — when what P.E.I.’s housing crunch really needs is more supply, says UPEI economics professor Jim Sentance.
The federal government announced in its budget Tuesday it is increasing the RRSP withdrawal limit for first-time home buyers to $35,000 from $25,000. It also introduced programs to allow first-time home buyers to lower their borrowing costs.
But Sentance said those initiatives largely push demand instead of supply, and could […]
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