But, don't go on a spending spree because the Fed's are eager to raise rates.
The year 2011, will be a strong Real Estate market. Why? Because, Canada is letting in a lot of immigrants, Mortgage rates are very low and have to remain low, not very low, but low (who has a crystal ball, more later). There still is alot of consumers wanting housing because, We, Canada is, Clean, Safe, great infrastructure, good schooling, well organized, Opportunistic, free health care, low interest rates and just a thriving country. And in the future water and Gas will become more important. Except for the emerging markets of Asia and South America we are the envy. And many people from those countries would love to come to Canada. We are nowhere near their population densities.
The government is making a ton of money as the price of gas goes up. They also want to put a stop on the hand outs. We all know the Interest rates are artificially low, so we are OK with some rise. That's the key though. The Bank of Canada can't crank on those rates because yes, we have a lot of our own somewhat fragile economy as well as our Interdependence on other countries, ie. United States.
Our Housing sector has continued to help our economy along, so the Federal government needs this to continue but is looking for job growth as a sign that the rest of the economy is building steam - I think this will be one sign for them to raise interest rates (which affects resale housing).
But raising rates too high, too fast will negatively affect our spending habits. Canadian indebtedness is high on the governments agenda. Households have alot of debt (mortgage, credit cards and lines of credit) they are paying back and as stated by the Bank of Canada and the Federal government.
http://www.theglobeandmail.com/report-on-business/video/bank-of-canada-year-ender/article1837557/
This too quick, too much rise in interest rates will hurt too many people and will create a housing problem. It can't happen which is good news for the Real Market in the GTA.
My Blog is here to help you make informed decisions about buying or selling Real Estate without any bias. To keep the consumer informed as to the market conditions in general and pertinent information for those interested in the Buying and Selling.
About Me
- GregNemezrealestate.blogspot
- I have three wonderful children and live in Clarkson/Lorne Park area of Mississauga. I grew up in Lorne Park area moving here in 1964. As a teenager, I spent my summers playing tennis tournaments around Ontario and the U.S. and winters were spent ski racing through out southern Ontario. After university, marriage, children and divorce I settled back in the Lorne Park area.
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