I chose a dang scary picture for today's post.
As of September 8th the Bank of Canada has set the Overnight Rate is 1%
Where do banks predict the overnight rate will by this time next year:
Scotia Bank: +0.75% (9/2/10)
CIBC: +0.5% (9/30/10)
TD: +0.63 (10/4/10) - This the annual average for the end of 2011
BMO: +0.58 (10/1/10)
Money is still going to be relatively cheap next year, so this will keep the real estate market buoyant.
What will cause a collapse
- Massive Jobs losses
- Credit Crunch and no lending
- People teetering on the brink of insolvency or have very little equity on their property (i.e Those in arrears in their mortgages)
- Big daddy of SARS or swine Flu
I think I'll take my chances buying right...especially since the volatility index of stocks is very high
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