U.S. slowdown may boost Canada’s real estate market
The prospect of a U.S. recession has some homeowners and prospective buyers nervous about the impact on the real estate market in Canada, but one economist says a slowdown could actually boost activity in Canada’s housing sector.
It’s not surprising that economic uncertainty in the U.S. has been the focus of much discussion and speculation in recent days, since Canada has followed the American lead during four of the last six U.S. recessions.
But Gregory Klump, chief economist for the Canadian Real Estate Association, said it’s still an “open question” whether the U.S. slowdown will turn into a recession — as defined by two consecutive quarters of negative economic growth.
“The chances are about 40 per cent, but the U.S. Federal Reserve is expected to cut interest rates and do so very aggressively to prop up their growth and keep them out of recession,” Klump told CTV.ca.