Canada’s economic growth is uncertain and has been very slow in the recent past.This is resulting in a lot of unrest among the Canadian citizens and other stakeholders The uncertainty has been brought about by a few factors that are connected in one way or another to form one larger issue.
Some of these factors include:
•Drop in oil value: This has caused a lot of concerns to all stakeholders in the oil industry and the country as a whole due to oil being one of the areas that maintained the economic growth of Canada at a constant rise. With a decrease in the value of Canadian oil, that means that the economy is going to be affected significantly because the exports are going to reduce.
•Poor exchange rates: The Canadian market has also reduced in value in the stock exchange market and reduced in value against the US dollar which has led to an increase in the prices of the
Commodities being sold in Canada. Importing goods and services to other parts of the globe is becoming a very expensive venture for the Canadian government to do which in turn leads to a decrease in revenue that the Canadian government receives annually.The Bank of Canada also significantly reduced their interest rates as a move to encourage more people to set up new businesses. Citizens are also moving to mitigate the economic uncertainty and revised their spending plans.
Sherry Cooper, chief economist for Dominion Lending Centers, said the unexpected majority win for the Liberal Party will lead to a re-balancing of economic policy in Canada. He also believes that The Liberals’ infrastructure spending plan could affect mortgage rates if the government provides more bonds to pay for the expenditure. He said that the yields will edge upwards once investors realize that the supply is Canadian bonds has increased. This means that the mortgage rates will be stable or even higher over the next year.This change of the economic policy in Canada might lead to cooling down the overheated real estate’ markets like Vancouver and Toronto, according to Cooper, which in turn could make a lot of future sellers miss the opportunity to cash out while the market is hot.
If you have a house that you want to sell but you are undecided as to when you will sell it, now is the right time to sell it. Most importantly, with the economic uncertainty, the spring market is going to be very unpredictable too and with how extremely hot the market has been there’s no telling when a correction in the market may take place. So save yourself from the constant worries and sell the house now when you still have a chance. AJ Lamba Team
Some of these factors include:
•Drop in oil value: This has caused a lot of concerns to all stakeholders in the oil industry and the country as a whole due to oil being one of the areas that maintained the economic growth of Canada at a constant rise. With a decrease in the value of Canadian oil, that means that the economy is going to be affected significantly because the exports are going to reduce.
•Poor exchange rates: The Canadian market has also reduced in value in the stock exchange market and reduced in value against the US dollar which has led to an increase in the prices of the
Commodities being sold in Canada. Importing goods and services to other parts of the globe is becoming a very expensive venture for the Canadian government to do which in turn leads to a decrease in revenue that the Canadian government receives annually.The Bank of Canada also significantly reduced their interest rates as a move to encourage more people to set up new businesses. Citizens are also moving to mitigate the economic uncertainty and revised their spending plans.
Sherry Cooper, chief economist for Dominion Lending Centers, said the unexpected majority win for the Liberal Party will lead to a re-balancing of economic policy in Canada. He also believes that The Liberals’ infrastructure spending plan could affect mortgage rates if the government provides more bonds to pay for the expenditure. He said that the yields will edge upwards once investors realize that the supply is Canadian bonds has increased. This means that the mortgage rates will be stable or even higher over the next year.This change of the economic policy in Canada might lead to cooling down the overheated real estate’ markets like Vancouver and Toronto, according to Cooper, which in turn could make a lot of future sellers miss the opportunity to cash out while the market is hot.
If you have a house that you want to sell but you are undecided as to when you will sell it, now is the right time to sell it. Most importantly, with the economic uncertainty, the spring market is going to be very unpredictable too and with how extremely hot the market has been there’s no telling when a correction in the market may take place. So save yourself from the constant worries and sell the house now when you still have a chance. AJ Lamba Team
