Today, I attended a seminar about the North American Economic Recovery. Apparently, the American Federal Reserve, the Bank of Canada and the governments of both countries, don't know what's going to happen. We are in an unusually, uncertain economic situation. The best advice is don't take chances. There are several encouraging trends, but they are baby steps. Americans are beginning to save instead of borrow. The labor market is beginning to slowly recover. Manufacturing is growing.
Canadians have a debt to income ratio of 148%, most of which is in mortgages. Interest rates are expected to rise, but because consumers are already financially exhausted, they will not be able to borrow. As a result, the market for high interest rates will not be there. The Real Estate Market will see a stabilization of housing prices. There is a possibility housing prices in Nova Scotia may drop 1% to 2% over the next 3 to 4 years.
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