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1 Sep

Here we go again. Another financial crisis?


Posted by: Leonore Claypool

Lots of disturbing news lately. Great concern about theUS credit downgrade and the debt crisis in Europe.  The stock market ups and downs earlier this month show investors’ worry and there is a fear that the U.S. could slip back into Recession. Just great. Here we go again right?  Well maybe not so gloomy.  Apparently these economic conditions will actually help Canada’s real estate sector stay healthy according to Mathieu Laberge, deputy Chief Economist at CMHC. Home sales and construction activity will cool but remain healthy in the second half of the year, due to favorable economic conditions that push up demand for homes.  Lower unemployment, a steady level of immigration, and low interest rates are working together to prop up Canada’s real estate industry. In Canada employment is expected to grow at a moderate pace in the next few years and interest rates to remain flat for the remainder of the year and increase in 2012.  Sounds good to me.  If he is right we escape yet another financial crisis. Oh it’s so great to live and work in Canada!