The word “recession” can sometimes cause us to sit back and worry about the state of the Canadian economy, the stock market, real estate prices, and our job security.
A recession is generally defined as 2 successive quarters of decline in gross domestic product (the total value of goods produced and services provided in a quarter), which is exactly what we’ve experienced; therefore, technically we’re in a recession for the first time since 2008 and 2009.
But wait a minute!
Historically, recessions trigger the Bank of Canada to lower rates; but just recently the Bank of Canada announced that it was leaving the benchmark rate of 0.5% untouched, sensing this recession might already be behind us. Some economists are saying the recession—mostly due to the retreat in the energy sector—is already over according to July numbers.
The real estate market doesn’t seem to pay much attention to the word recession either!
Bloomberg Business reported: “Canadian housing starts rose 12 percent in August to the highest level since September 2012.” Although there are some local or regional disparities, we should be encouraged that consumer confidence is solid and the demand for home ownership hasn’t slowed down at all.
Since interest rates remain low and the housing market is maintaining its strength, now’s the time for someone to have a look at their own mortgage or buy the home they’ve had their eye on for a while. We can help. Phone or email us today.