Shaky signs of a housing rebound...

Over the past few weeks we have been getting conflicting reports about the state of the economy. It's enough to make your head spin... Garth Tuner expressed it well in his blog the Greater Fool:

"...media stories of bidding wars and escalating home prices mixed with dire predictions of where a $50 billion deficit will lead us. Government tax credits and cheap rates encourage people to spend, while household debt soars to a new $1.3 trillion high. A thousand people apply for an entry-level office job in just two days, while the geniuses who lost billions running the public pension plan get chunky bonuses.

Abnormal times. The country’s largest bank bleeds money, while the stock market soars. Most people expect life to return to what it was a year or two ago, but fail to understand that cannot happen. It’s now evident we could have $100 oil, rising interest rates, inflation and higher taxes at the same time as chronic unemployment and industrial collapse.

And how can things end fairly, when terrified politicians lavish $1.4 million on each and every autoworker job – with no guarantee any will exist in a year? Governments are more involved in the running of the economy than at any time since the 1930s. And that turned out well."

The following link leads to an article in the Toronto Star which puts some perspective on recent buzz about the return of bidding wars... etc.

YourHome.ca - Real Estate - Shaky signs of a housing rebound , First-time buyers take advantage of low rates, propping up May sales Shared via AddThis

Comments

[David Pylyp]

You are absolutely correct that there is a conflict in the consumers perception of what is happening out there in the business world.

Is money as plentiful in Canada as it would seem to the shoppers in April and May?

Will this trend continue?

Thank you for pointing some great reference material to draw informed conclusions from.

Keep up the good work!

David Pylyp