Wednesday, September 24, 2008

Interesting Source for Economic Revision

This interview with Bill Clinton and the David Letterman Show is a concise video that encapsulates the economic situation south of the border. September 22, 2008

Bill Clinton articulates some key points in an enlightening fashion, that discuss where the current US housing mortgage market problem stems from, and how it will effect the market in the future.

In hindsite; [President Clinton] discusses the highly leveraged financial system that requires more oversight, how the Federal Reserve handled the economy as it related to the DOT com Boom and Bubble that crested in 2002 and the reinvestment in real estate as the form of economic growth.

Our economy is strong and controlled in a much different fashion, yet we are tied to North American job growth and in simple terms tied to the US economic growth for exports, goods and services.

The Toronto Star reports; Canada's `boom in the housing markets is definitely over'

Canadian existing home housing prices are decelerating quickly with the steepest decline in more than a decade recorded in August, as analysts say homeowners in some cities should prepare for further depreciation.

The article continues.... doesn't mean the market will plunge, Tsur said.

Toronto housing prices are not out of line because they have not had the explosive growth of other cities, Sommerville said. "Some cities look way out of line when you run the numbers, but Toronto is bang on." Complete report details.

Yet from all these headlines, there is sense of hesitation. Someone recently said to me "We are returning to a market level that was seen in 2003 or 2004. At that time these were banner years for the Toronto Real Estate Board."

I look forward to your comments and thoughts.

If you have a need to sell and would like to interview, feel free to contact me.

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