Canada to benefit by US decline

The potential US recession may offer benefits to the Canadian housing market as people look for the better opportunity across the border.

In some situations, Canada poses to be hurt even slightly from a potential US recession. Yet, in the real estate market here, it could turn potentially beneficial. It could boost the activity seen in the housing sector here.

As reported by CTV.com, there is hope. Gregory Klump who heads the Canadian Real Estate Association, has this to say. "The chances are about 40 per cent, but the US Federal Reserve is expected to cut interest rates and do so very aggressively to prop up their growth and keep them out of recession."

There is little doubt that a US recession would use Canada's economy, since both the US and Canada are each other's largest trading partners. A decline in the US in terms of sales of imports would hurt Canada as well. If the economy does begin to shake in Canada, though, economists believe that an interest rate cut would benefit the housing market even more so.

Currently, the Canadian real estate market is doing very well, seeing doubt digit increases in prices in several areas. In fact, some 13 out of 24 markets saw this increase. Home prices here increased by 10.8 per cent over 2006 country wide.