Real Estate Buyers Ignoring Turmoil: Experts – Toronto Home Buying

The comments came after the Canadian Real Estate Association revised its 2011 national forecast for home resales, citing stronger than expected sales and higher prices in the second quarter.

An earlier CREA forecast that called for a one per cent dip in sales this year from 2011. But the association said Tuesday sales should grow this year – albeit less than one per cent above 2010.

CIBC deputy chief economist Benjamin Tal said recent stock market uncertainty due to the European debt crisis and the United States credit downgrade is actually helping boost sales in Canada’s real-estate market.

Bad economic news abroad tends to keep Canadian interest rates low, he said.

Since the European and American debt issues came to a head in recent weeks, economists have been predicting the Bank of Canada will leave its key rate untouched at one per cent until at least next year.

According to CIBC deputy chief economist Benjamin Tal, fluctuations in the stock market, uncertainty about the European debt crisis and the weak United States economy, are actually helping improve home sales in Canada.
The Canadian Real Estate Association reported stronger than expected sales and higher prices in the second quarter and revised its 2010 sales prediction upward.