Slowdown hands Carney pause
August 31, 2010
Canada’s economy is slowing down sharply, ushering in a new phase of tepid growth that could last for years.
The 2-per-cent pace of expansion for the second quarter, reported Tuesday by Statistics Canada, gives the central bank more flexibility to hold off on interest rate increases in the months to come. The growth rate, which compares with a 5.8-per-cent clip in the previous three months, was slower than even the most pessimistic estimates, and reflects a widening gap between the country’s imports and its sales abroad, as well as slower spending by consumers and governments.
Canada is likely settling in for a long, underwhelming stretch, rather than taking a nosedive back into recession. The scenario policymakers and economists have been warning about for months is now playing out: households are rebuilding savings, companies are still investing cautiously, and governments are retrenching after showering their economies with billions in stimulus money to ward off a deeper slide.
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The Globe and MailHousing bust unlikely, says think-tank
August 31, 2010
A U.S.-style housing crash is unlikely in Canada, says a study by the C.D. Howe Institute.
A decline in underwriting standards played an essential role in the American housing boom and subsequent bust. That has not been the case in Canada, says the study released Tuesday.
Canadian housing policies, which avoided the sharp declines in underwriting standards seen in the U.S. “worked well in reducing the possibility of a housing bust in Canada,” said the report.
The C.D. Howe report comes on the heels of one from the Canadian Centre for Policy Alternatives, which said the Canadian housing market is a bubble ready to burst. It also shows the debate that economists are having over the direction of the market.
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Toronto StarBuyer vs. seller: Who's on top in GTA housing market?
August 27, 2010
Picky buyers, nervous sellers. After a red-hot spring, Greater Toronto's housing market has hit the brakes - hard. Star reporter Tony Wong takes a look from both sides.
THE BUYER: In the driver's seat
The return of a buyer’s market for housing in the Greater Toronto Area means home purchasers are taking their time to find the perfect place to live.
THE SELLER: In the hot seat
After more than a decade of rising sales, home sellers are finding they have to reduce their expectations – and asking prices
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Toronto Star
