Good news on how Canada will very likely avoid the recession around the world, with some good reasons why. This article "Economy in 2012: Teetering on the brink but should avoid recession" shows the economy changes in 2012 will affect the real estate market. High household debt will restrain consumer spending and housing activity, regardless of attractive borrowing rates, which are likely to remain near historic lows.
Expensive housing is keeping a lid on new home construction, meaning the housing sector cannot be expected to contribute much to economic growth. Nor will it get any help from retail sales in the near term. The Business Council of B.C. notes that retail sales contracted through most of 2011 in real per capita terms when population growth and inflation are taken into account.
References: Link: http://www.vancouversun.com/business/Economy+2012+Teetering+brink+should+avoid+recession/5927518/story.html
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