Friday, July 04, 2008

Canadian Economic Slowdown Will Be Brief

Canada's economy will manage growth of just 1.4% in 2008 but stage a quick recovery next year when it is expected to expand by 2.5%.

Weakness in the U.S. economy has had an impact on Canada's economic growth, but domestic demand has helped mitigate the drag.

The surprise economic contraction will be short-lived as growth prospects for the remainder of the year should brighten, with financial market pressures starting to ease, the U.S. economy getting a boost from the issuance of tax rebate checks, and commodity prices remaining historically high.

Canada's core inflation rate will trend higher this year but remain below the Bank of Canada's 2% target and stay there through 2009.

Canada's housing market is also poised to cool
as soaring prices have driven the cost of home ownership beyond the reach of many families. Housing affordability in most major markets across the country has deteriorated to its worst levels in almost 20 years.

However, the extent of any weakening is expected to be much less pronounced than what is occurring currently in the U.S. as the Canadian market did not experience many of the excesses evident south of the border.

U.S. economic growth to be modest this year, rising 1.5%. Growth is projected to strengthen to 2% in 2009. We believe that the U.S. economy will avoid a contraction this year and should start to see sustained upward growth momentum in 2009.

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Blogger said...

How much is your home worth? Well, it all depends where you live.

The real estate market is still shaking. New data suggests that home prices have hit a new record low. In every new study that comes out, homeowners from Miami, to Las Vegas, Phoenix and Los Angeles, have seen their home value go lower every time.
Is that disappointing? Of course it is.
Should we sell? Is not a good time.
Should we stick to it? Yes, if you can.
Have we hit bottom? Nobody knows.

Banks are facing their worst foreclosure crisis.
Don’t take me wrong, it’s good if you are in the market to buy a home for yourself or if you are an investor, but if you are not, and you own a home, most likely the value of your property is down at least 15 %.

Why do banks care if you are loosing your home? By having to sell repossessed homes, banks have to literally slash their prices down. It gets very costly for them, after all, they have to pay property taxes, maintenance costs, and whatever utilities that need to be paid, all of this expenses for a house that it’s just sitting there, vacant, and the bank is getting nothing in return.

The latest study by the S&P/Case-Shiller Home Price Index of 20 cities, revealed the news that for 22 consecutive months home prices dropped. Only from April to May, 2009 the decline was of 0.9 %

12:08 PM  

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