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Monday, November 23, 2009

Housing Market and Ontario Economy Outlook

A recent CMHC outlook Conference recently reporeted the following:

- economy has rebounded and consumer spending grown
- mortgage rates are expected to stay low until well into 2010
-mortgage payments have put less of a burden on after tax income and affordibilty is very positive in Canada
- house sales will continue to improve in 2010 but will rely on employment growth
- Canadian saving rates have moved up due to uncertaincy about jobs etc. As the recovery continues, saving rates will start to decrease
- this recession has not been as deep as the previous one
- our exporting will be slow to recover as US households are saving more and consumption has decreased
- Canadian consumer spending will remain low for 2010
- Walmart profits have increased significantly, indicating consumer spending awareness
- 68% of Canadian mortgages are fixed term
- debt consolidation is the biggest reason for refinancing at these low rates
- finance, insurance and real estate sectors have seen an increase in jobs.

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