Ottawa is going to extend their $125 Billion* mortgage buy-back program because it makes everyone happy.
The banking industry has been pressing the Finance Minister to extend the length of the program because they continue to benefit from it and because there is still the possibility that liquidity pressures could re-emerge.
The move comes amid a global debate among political leaders, central bankers and economists about when to scale back various measures that have been put in place to boost the flow of credit and stimulate economies.
This news has caused the soothsayers at RE/MAX to wriggle with excitement and predict ‘significant growth‘ for Canadian real estate markets in the final quarter of this year. From a press release reprinted as an article in the Globe and Mail:
“While there may still be some challenges down the road, the worst is definitely behind us in the housing industry,” Elton Ash, executive vice-president of the firm’s Western Canada region said in releasing a report on Canadian home sales and prices.
“The bounce-back that began in early spring has made this recession one of the shortest on record for real estate,” the firm said in its report. “Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now under way,” Re/Max said.
*Corrected. Several people pointed out my $125 million error.