Economy Good for Buying a Home

As you may know, the Canadian economy, for the most part, is influenced by the U.S. economy, which is still struggling, but some sectors are showing some signs of recovery. Recent news that investment guru Warren Buffett felt the U.S. economy was strengthening has increased market activity there in the past week.

For the real estate sector in Canada, the buzz words are “balanced market”, which could easily turn into a buyer’s market as interest rates remain low and sellers reduce their asking prices to make the sale. Chris Potter, a tax specialist at PriceWaterhouseCooper writes in a report called Emerging Trends in Real Estate 2011, “Rising interest rates coupled with tight bank requirements and broader economic concerns tamper down a recent home buying spurt, particularly in Ontario and B.C., where purchasers stepped up activity before the HST went into effect.”

The market did experience a burst of activity prior to the implementation of the HST. Then, sales slumped over the summe

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