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Bank of Canada sees no rate changes through '09 – What does this Mean to You? Should you Buy or Sell?

A strong currency, a weak U.S. economy and cache of US dollars and buying Euros and other

credit tightening has the Bank of Canada "asset-based" currencies, like the Canadian

projecting no change in interest rates through Dollar and the Australian Dollar.

2009, and further warning its economic

forecast is subject to a "slight tilt" to the uncertainty in the Middle East adds to oil

downside. prices rising, which is a good pressure ironically

for a lot of Western Canadian interests, but it

With inventory levels of homes in Vancouver raises prices due to transportation costs (buy

in all categories slightly up (highest they have local goods!). Global commodity demands

been in three years but still lower than 2004), increase prices, and Canada is in the biggest

many of my clients call me, scratching their “gold and metals rush” in history! With so many

heads as to what to do at this point – should other positive economic pressures, the Olympics,

they buy, sell or wait on the sidelines in cash etc, we seem to be able to weather the

for the correction to come? It is truly heady potential US recession coming. Or will we?

days for Western Canada, and Vancouver,

especially the North Shore - there seems to be I believe in studying economic historical charts –

no end in sight as the demand for properties the “trend is your friend” they say! And with our

continues to rise. Housing price charts so “over-extended” in

Vancouver, one would feel there needs to be a

Wages continue to increase and inflation has correction based on all things historical that

been kept at close to 2% due to the continu- affect the charts. But even the 30 year Realtors

ing rise of the Loonie, I have been saying to are scratching their heads too as many have

my clients since 2004 that the Canadian dollar been touting a huge correction for three years.

would pass the US Dollar due to the troubled

USA. The US are now “Net Consumers” – living So the conclusive advise seems to be – Call Me

on extended credit, beyond their means, and we will discuss your PERSONAL situation - if

although there is still massive “equity” in the you have made a lot of profit in the last few

US, 47% of homes are owned clear title – years, perhaps you should take it and play it

mortgage free – but they are headed for a safe, or if you can ride out a possible 30%

cliff of gargantuan proportions if they correction (or greater) over the next five years,

continue on the road they are on. It seems then hold or even invest and purchase more

the “Age of Entitlement” has really taken root property

there and people are living (and spending) One thing is for certain - Vancouver's "Paradise

truly like there is no tomorrow. I read Factor"! Demand for living in Vancouver will

yesterday the Iraq war now has the US tax continue to increase as the World's greatest

payer on the hook for almost 2 trillion dollars cities get overpopulated, more polluted and rising every day with no end in site – unsafe - people will seek out a "Safe Harbour" for

incredibly there are people saying Iran is their children and their lives here in our Paradise

definitely next! We hope not, for the planet's city!

sake. This could bankrupt the US ultimately,

and many major nations are selling their Please call me for further information on this

article, Yours truly, Michael J. Dowling.