The Real Estate Market Could Get A Boost From Market Chaos

Real estate boost from market chaosThe upside in a global stock market rout may ironically be a healthier housing market – at least in the short term, say economists.

“The housing market has nine lives. Every time interest rates are supposed to go down, something happens and it helps to keep the market going,” said Benjamin Tal, senior economist at CIBC World Markets. Click here to view the full article.

A boost in the market is a bit optimistic, since the market is already firing on all cylinders. In the short term, the market chaos might actually cool the market slightly as some buyers & sellers pause briefly to see how the situation will shake out. Once we see that the world is not ending, and that a Canadian double dip recession is not very likely, the market should resume it’s healthy pace. If anything, the news that interest rates will likely be stable well into next year (and maybe even until 2013) should reduce buyers’ and sellers’ anxiety somewhat – the former less worried about interest rates and the latter less worried about falling prices. In turn, this might make the market a bit less crazy over the coming months.