I like it when people get off the fence, particularly when the people getting off the fence are economists. In The Milken Report (www.milkeninstitute.org) Ross DeVol states that the US economy will add approximately 2 million jobs in 2010 and 3 million jobs in 2011, and that GDP will grow by 3.5% in 2010 and 3.7% in 2011. He continues by stating that he believes inflation will remain low, and that the bulk of the improvement in employment and GDP will be spurred on by the Fed keeping ...
The Bank of Canada raised its overnight lending rate by 0.25% on Tuesday this week. Surveys showed that economists were split in their projections of whether the Bank would raise rates or note, citing a variety of reasons either way. We are likely to see one more rate hike before the end of the year (maybe two) by the Bank, which would send the Prime Rate to 3.00%. The current Prime Rate is 2.75%, and still abnormally (and historically) low. Unemployment was 7.9% ...
Regular Maintenance is the Key Inspecting your home on a regular basis and following good maintenance practices are the best way to protect your investment in your home. Whether you take care of a few tasks at a time or several all at once, it is important to get into the habit of doing them. Establish a routine for yourself, and you will find the work is easy to accomplish and not very time-consuming. A regular schedule of seasonal maintenance can put a stop to the most ...
Last Friday shorthly after the Canadian job report was released, I received a report from the National Bank siting that Canada may have no choice but to raise interest rates in the coming months. The report indicated that with the jobs created in June, the level of total employment reached it's pre-recession peak. The report sites this in contrast to the US still being 5.4% blow peak levels. The report indicated that the year-over-year growth rate in employment in Canada is now more ...
Well, here they are, the Guelph Real Estate Statics for the first half of 2010 and what a first half it was. As always, looking at the month to month comparison from June of 2009 to June 2010, the number were actually quite interesting. The dollar volume of sales were down 16 percent and the number of units sold were down almost 30 percent. However, the average price was up almost 20 percent from comparing June of 2009 and June 2010. Astonished I think is the correct word to use here! ...
Fixed mortgage rates will likely fall in the coming week. Bond yields are down as a result of weak GDP numbers for April at 0.00% growth. (That’s right ~ the economy was stagnant in April.) The USA is in the same shape, with a lagging economy and uncertain outlook on the horizon. This leads the way for the Bank of Canada to leave its overnight lending rate at its current level, which is great news for variable rate mortgage holders. It is highly likely that we will see rates remain ...
The Harmonized Sales Tax (HST) comes into force on July 1, 2010. The Real Estate Industry is the hardest hit of any industry in the province. Real Estate commissions and legal fees that were previously exempt from Provincial Sales Tax (8%) will be subject to the HST (13%), adding approximately $1,500 to the cost of the average sale transaction. The HST will not apply to the cost of a resale home; but all new homes will be subject to HST. There is a 6% rebate on new homes with a purchase ...
It looks like all the government stimulus hasn’t driven up inflation, as some had feared it might. That’s probably because we are still sitting at an unemployment rate over 8%. The Total Consumer Price Index showed gains of 1.4% in May. When excluding energy the increase was just 1%. So what does this mean for Interest Rates? The result of low inflation is that there is little need to increase short term rates, such as the Prime Rate, and there will be less pressure ...
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