There are conflicting messages about when Canada will move out of the recession. One thing is certain buying real estate in 2009 is a safe place to put your money.
2009 not like 1929
I’ve heard some compare the recession of 2009 with the Great Depression of 1929, and that’s wrong and irresponsible. One main distinguishing factor of the two recessions is the rate of unemployment. In 1929 the unemployment rate was 25% versus in 2009 it is hovering at 7%.
Manufacturing has been hit hardest in this recession. However, Guelph’s economy and the Tri-City area remains a star in the Canadian market place because of the diversity of its economy.
Government spending replaces consumer spending
The low interest rates we are currently experiencing in this recession where created to spark consumer spending. Consumers however are not spending and saving instead!
In the immediate future, this consumer savings isn’t helping the recession, so governments are picking up by spending. To stimulate the economy, governments are spending on infrastructure. The immediate benefit is job creation, but there will be long-term consequences of increased inflation in the coming years.
Low interest rates lead the way for real estate
House values in Guelph are holding steady. Don’t expect to get the same bargain-basement prices that consumers are getting in the US. The reason is that in Canada our foreclosure rate has remained steady for the last 20 years. High foreclosures in the US created a glut of homes in the market place. The result was increased supply, while demand for homes came down. Most price ranges in Guelph remain the same as last year. The Canada Housing and Market Corporation (CMHC) is forecasting an overall 2% increase in home values in 2009.
Fixed-rate mortgages have never been lower. I’m finding that people who are confident in their employment are buying real estate. Families continue to move and real estate investors continue to buy properties.
A reputable mortgage broker is different than the banks because they can shop the mortgage market for you. The ability for you to choose which financial institution, be it a bank or another finance company, gives you the ability to customize your own mortgage. If your current mortgage is with the bank, be sure to bring in your mortgage statement so that the broker can compare your current mortgage with alternatives.
