Realtors Lead Economic Recovery
Statistics Canada reports that Real Estate Agents are helping to lead the country out of the recession. I say bravo! Who better than a group of hungry Realtors to loosen the purse strings of the nation. Canada's economy grew for the first time in 11 months in June, providing a glimmer of hope at the end of a period that still marked the country's third consecutive quarter of economic contraction. The Gross Domestic Product increased 0.1 per cent in June from May, led by the oil and gas industry, wholesalers and real estate agents, Statistics Canada reported Monday. Statscan's latest GDP figures reinforce the Bank of Canada's outlook. The central bank predicted last month that Canada's first recession since 1992 would end this quarter and begin a long, slow climb out of the hole created by the financial crisis.
Locally, sales increased slightly last month compared with August 2008. This is the second month in a row to post an increase over the same month in 2008. The average sale price for August jumped almost ten percent from a year previous! Before you get too excited does this mean that the house you bought last August is suddenly worth 10% more than you paid for it? Sorry not quite, what it probably does indicate is that as the economy improves, more expensive homes are starting to sell. Our inventory of active listings is still relatively low. This should increase demand and prices. I predict a active fall for Guelph real estate, much stronger than last year's pre-recession market.
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