(Source: Vancouver Sun)
Canada’s housing market has become so much more grounded since the ugly property bust of the last recession that this time around it is one of the most resilient sectors of the economic downturn.
The lessons learned from the housing bust of the early 1990s helped prevent Canada from being tempted down the subprime path that devastated the United States and, combined with record low interest rates and government stimulus, has caused the impact of the latest slump to be less severe and relatively short-lived, figures released Tuesday underscore.
“The turnaround in Canadian housing this year might be the single most surprising turnabout we’ve seen in any economic indicator I can think of,” said Douglas Porter, deputy chief economist at BMO Capital Markets. “The fact we saw a little bit of a rebound isn’t a total shock, but the extent of it is nothing short of amazing.”
Read Alia McMullen’s full article “Housing rebound ‘nothing short of amazing’” in the Vancouver Sun (July 15, 2009).