Author: Herman H. Cheung
A new forecast from RBC Economics says that Canada’s economy is set for real Gross Domestic Product (GDP) growth of 3.1% this year and 3.9% in 2011.
RBC has noted that a peak in stimulus investment, improved credit markets and a recovery in consumer spending are pushing the increase of GDP growth.
Craig Wright, chief economist has noted that recovery has taken a solid root in Canada, which is also due to low interest rates and improved credit markets. He has also gone as far as to say that the strength in the housing market and investment by private sector should provoke additional economic growth.
With the economy in for a major rebound, we can also expect to see that the housing market improving further on.
As it stands, we are already surpassing last year’s level, however the months so far were ones we were deep into the recession. We will truly be able to see how the market will fare once we reach April, which was around the time last year when we first began to see huge improvements in the housing market.
Until then nothing is certain, however I believe that with new mortgage rules and interest rates rising in mid 2010, we might see the housing market stabilize, but no records broken anytime soon.
Rita Baxter
Broker of Record with Town and Country Realty
www.lloydminsterrealestate.ca/
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