Global economic uncertainty dominates the business news these days and I’m often asked about whether rates are going to rise. Rates at some point will rise and there’s only a few countries that are considering doing so and not at any time soon. Economic growth in Europe and Japan is still anemic and now China’s growth is becoming a concern. The recovery in the US and the UK look good but are far from amazing.
Canada’s economy took another step towards a recession with the latest GDP shrinking for the fifth straight month, contracting 0.2% for the month of May. The weakness was broad-based but the on-going slump in oil prices and other natural resource prices took most of the blame. The economy’s overall, sluggish performance is likely to persist allowing mortgage rates to remain at their current low levels.
Million dollar home at 78 st and Saskatchewan Drive for sale in Edmonton, Alberta on October 2, 2014. Expensive homes are moving fast in the real estate market. Perry Mah/Edmonton Sun/QMI Agency Housing sales are dipping in Edmonton compared to last month, but the properties with the highest price tags continue to move swiftly. And despite the sales slow down, prices are still higher than the same time last year.