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Real estate feels effects of market volatility

Posted on 10 August 2011

Overall, how will recent developments on stock markets in the U.S. and Canada affect the real estate market in Canada?
Overall volatility suggests uncertainty about the economic outlook, and that affects consumer confidence. If people remain confident in their ability to purchase homes, sales will remain strong. If there is a downturn in the real estate market in the near future, it will likely be temporary. For example, last summer some factors – new lending guidelines, interest rate hikes and uncertainty surrounding the HST – caused a drop in demand for housing, but that turned out to be temporary………………………………………Full Article: Source


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