Not only is the weather hotter than hot but also the market. Examples; A little 2 BR, 800 s.f. character house in East Vancouver with partially finished basement at Fraser St. & E.19th Ave. on a 33' x 112'. Listed at $569,000 had 12 offers and sold for $650,000! Another 2 BR home in Burnaby at Dundas St. & Gilmore Ave. 880 s.f. house with 1 BR suite in the basement on a 33' x 122' lot but this one was totally renovated. Listed for $578,000 had 10 offers and sold for $657,000! These are a few examples that are happening out there in the market place. I guess if you were waiting for the bottom to buy in, you have just passed it. You'll hear all about it on the news in the weeks or months to come. In the 1990 Recession the market had reached a high and tumbled 18%. It took only 2 years before surpassing it's 1990 high and went up an additional 64%!
V-shaped recovery in the works, says economist
Paul Vieira, Financial Post
OTTAWA -- Canada's economic recovery is likely to be far stronger than markets anticipate, a Bay Street economist forecast Wednesday, indicating that a "burst" of 10% growth is possible in the coming quarters.
The prediction from Sheryl King, chief economist and strategist at Merrill Lynch Canada, comes amid fierce debate over what shape the recovery will take following the deepest recession since the Second World War.
"Markets think we are going to get this gradual rise in growth, and then everything is going to be fine," Ms. King said in an interview. "But business cycles never end like that. You usually get some pop in growth." Those who argue that a strong rebound, rather than a slow, weak recovery, is in the offing were handed a key piece of evidence Wednesday when major U.S. credit-card providers, led by American Express Co., reported defaults and delinquencies were less than expected in June. This may signal that U.S. consumers' credit positions -- up until now, the missing piece in the U.S. recovery puzzle -- are not deteriorating as rapidly as feared, despite rising unemployment and the continuing housing slump. Ms. King's bullish call, which would an indicate a V-shaped recovery is in the works, is based on surprisingly positive results from two Bank of Canada business surveys, released on Monday. They showed firms are the most optimistic about future sales in almost a decade, and obtaining new loans is becoming less difficult. Hence, the results this week imply the country is headed for year-on-year growth of about 4.25%, which would require a quarter or two of 10% growth as near-term weakness is expected due to auto industry shutdowns.
Her short-term forecast differs sharply from most other Bay Street analysts, who have generally said the recovery would be slow and protracted. Under her scenario, the Canadian economy could grow 10% in the fourth quarter and 7.5% in the first three months of 2010, before settling down.
She added that monetary stimulus, in the form of record-low interest rates, is "bubbling" underneath the surface and set to engineer a "burst" in growth.
First Trust Advisors is calling for annualized growth of 3.5% for the last half of 2009, and a gain of 4.5% in 2010