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VICTORIA — Finance Minister Carole James says the goal of her budget’s new housing taxes is a downturn in the market and a drop in home prices, potentially making the market more affordable but also potentially putting some existing homeowners under water on their mortgages.

James said Wednesday that her new taxes on speculators, foreign buyers and homes valued at more than $3 million will, she hopes, lead to a correction in a housing market that has experienced steep price increases for several years.

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“We need to see a moderation,” she said. “My hope is by addressing both supply and demand, you will see more supply in the market and that will ease some of the cost pressures and you’ll see a moderation.”

James was asked specifically if the goal was a decline in home prices. “Yes,” she said. “I hope we don’t see the kind of escalation you are seeing now in the market.”

A decline in house prices will undoubtedly be welcome by those who are priced out of the market. But it could also cause some recent buyers to suddenly see the value of their home drop below the price of the original mortgage they took out to purchase the property.