One of the things that bloggers like to do best is speculate on the future. They might talk about which museums should get possession of recovered Claude Monet paintings or who will be cast in the latest big name movie, but the question on everyone's minds right now seems to be: when will the economy recover? In this article, we will explore expectations, reality, and predictions for the future market recovery in North America, especially as espoused by bloggers such as ourselves.
Many people are so sick of seeing red print on the statements from their property tax statement, that they're beginning to despair. Politicians have been promising a speedy economic recovery (pending your vote for them, of course) and so far it hasn't materialized. They see various European Union states on the brink of economic collapse and they wonder: is this our future? Will things only get worse from here on in?
The problem, of course, is that despite political promises and popular expectations, market recovery isn't something that happens overnight. We didn't wake up one morning to see that real estate had jumped $100,000 in price while we were sleeping, it was a gradual process, and so it will be with market recovery in other areas. So if you can, sit tight and be patient. Things won't be bad forever, because questionable Wall Street practices that put us in this position have (mostly) been stopped.
The reason much real estate has recovered so much faster than markets in other cities is that there is still a lot of immigration, both domestic (i.e. moving from other Canadian cities) and international (i.e. new immigrants to Canada settling in Toronto), which keeps the demand for housing high. For a market to recover, it needs that demand, and there's one primary factor that attracts people to settle in a city: jobs.
Government efforts to assist market recovery, then, have consisted mainly of attempting to stop job loss and promote the creation of new jobs, especially in areas suffering worst from the economic downturn. For this reason, you're able to get a break on your mortgage if you're buying commercial property to start a business in an area with low property values and high jobless rates. It is the same in much of the United States. This is how ordinary people can help with market recovery: by opening businesses and spending money locally.
If you are on the fence about whether or not it is the right time to dive into your first real estate purchase, first talk to a mortgage specialist like those at Morcan Direct.