Tuesday, October 23, 2012

The price of real estate depends upon.....

This is an interesting article

interest rates and mortgages:
http://www.theglobeandmail.com/report-on-business/economy/housing/higher-mor
tgage-rates-would-hit-households-hard-bmo/article4629849/?cmpid=rss1


What happened in 2008?
After the 2007 inflation?

What happened in 1988-1996?
After the 1970s stagflation?

And what will happen in the future?

Interest rates will stay low FOREVER and EVER?

Live long enough and find out.

The article states: "with signs the real estate market could now be turning
a corner after years of strong growth" and this is true, our market has been
soft since about Labour Day with no reason to rebound between now and
December, this indicates a downturn in prices, it's coming

The Fed's have a bid problem on their hands, with low rates people are
borrowing and increasing their debt but if they increased the bank rate it
would cause panic - what to do?!

I don't feel we are at the precipice of a giant slide in prices, more of a
small adjustment, maybe 10% drop or so and then a leveling out

As long as there are jobs and people are working, the economy should
survive, otherwise.......


I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

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