Mark Normoyle

The housing market has lost its lustre. No doubt about it. However, this will not lead to a free fall for Canada’s housing market. This country will not experience home price declines to the tune of what we have witnessed in the United States over the past few years.

In all likelihood, the next few months will not be the best in history for Canada’s resale and new housing markets. Economic growth is slowing, the harmonized sales tax (HST) came into effect in Ontario and British Columbia and consumer confidence is being challenged by the potential negative impacts on the global economic outlook of the European debt crisis and a jobless recovery in the United States. These factors have already put a dent on housing demand and will continue to do so in the coming months.

OTTAWA, September 8, 2010 –The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

Municipalities issued building permits worth $6.4 billion in July, down 3.3% from June but 33.0% higher than the level in July 2009. The decrease in July was a result of declines in both the residential and non-residential sectors. The total value of building intentions increased in four provinces: Ontario, Saskatchewan, British Columbia and Manitoba.

TORONTO, Sept. 7 /CNW/ - A majority of companies in Canada and around the world are having difficulty attracting the critical-skill and talented employees needed to help them rebound and prosper in the wake of the economic crisis.

The 30% drop in seasonally-adjusted monthly housing resales in the first seven months of this year has raised fears that a full-blown slump is in the works for Canada. However, we find little compelling evidence of irrationality or bubbles in the overall Canadian market relative to historical patterns.