Winnipeg Free Press - PRINT EDITION

Worst fears of economic collapse abate

  • Print

A year ago, Canadians were worried about the impact that outside influences were going to have on our economy.

With a couple of European countries looking like their economies were going to collapse, there was a concern of a Euro Zone breakup. The situation in the United States wasn't looking any better, and politicians seemed to be more concerned about the election than fixing the country's finances.

There was also a great deal of speculation in Canada concerning rising interest rates.

Although everyone is far from being out of the woods yet, our fears of the past year did not come to realization, much to our relief. Europe did not fall apart and is trying to get its house in order.

This impacts Canada in that financial markets and homebuyer confidence would be affected by any change in order. The U.S. had its election and has not fallen over the fiscal cliff. It's some distance from recovery, but it hasn't collapsed.

It appears as though the market for new homes in the U.S. is starting to grow again. Naturally, there are various pockets where severe unemployment and past over-growth will keep rejuvenation slow. However, other markets that had been quiet for the past few years are starting to show gradual signs of growth.

The U.S. has tied its monetary policy and interest rates to unemployment figures. As long as unemployment remains above 6.5 per cent, interest rates will remain relatively unchanged. It's not anticipated the unemployment rate will dip below this figure until 2015 at the earliest. Expect Canadian banks not to stray too far from U.S. rates.

It should be noted that U.S. renovation spending plunged by more than 25 per cent since 2007. To date, it has not shown any signs of recovery. But the opposite is true in Canada. As soon as it appeared things might cool as the recession loomed, the Home Renovation Tax Credit brought new life to the industry. It hasn't looked back since.

The Office of the Superintendent of Financial Institutions reduced the borrowing-to-equity ratio from 80 to 65 per cent, which may impact the number of larger renovations going forward.

Although 2013 is predicted to be a slow-growth year, it's a growth year nonetheless. Canada, and in particular Manitoba, are still moving forward throughout this year.

Mike Moore is president of the Manitoba Home Builders' Association.

Republished from the Winnipeg Free Press print edition February 9, 2013 F8

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Stuary Murray announces musical RightsFest for CMHR opening weekend

View more like this

Photo Store Gallery

  • MIKE DEAL / WINNIPEG FREE PRESS 060711 Chris Pedersen breeds Monarch butterflies in his back yard in East Selkirk watching as it transforms from the Larva or caterpillar through the Chrysalis stage to an adult Monarch. Here an adult Monarch within an hour of it emerging from the Chrysalis which can be seen underneath it.
  • A young gosling prepares to eat dandelions on King Edward St Thursday morning-See Bryksa 30 Day goose challenge- Day 17- bonus - May 24, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Which of Manitoba's new landlord-tenant rules are you looking forward to most?

View Results

View Related Story

Ads by Google