Good News and Bad News

As we wrap up the last few official days of Summer, we are being treated to a balmy respite.  The first few days of Autumn are expected to continue to be summer-like, with warmer than normal temperatures and lots of sunshine!  We'll take it!  And now for the good news.  (There's more?)  Canada's overall economy is booming like gangbusters!  According to the Bank of Canada, consumer spending remains strong, with solid employment and income growth.  There has also been an uptick in business investment and exports.  The loonie is on the rise too, reflecting the strength of our economy.  Now the bad news.  All that being said, the Bank of Canada saw fit to raise its interest rate earlier this month - by a quarter per cent.  That will mean that anyone who has a variable mortgage will have to pay a bit more each month.  And anyone hoping to purchase real estate will find a mortgage a bit more expensive.  The Bank will be paying close attention, however.  The next scheduled rate announcement date is October 25th.  The Bank will be monitoring how well our economy reacts to the higher interest rates.  In the meantime, buyers will be happy to note that the housing market is becoming more balanced in comparison to earlier this year.  And that means prices eased slightly for the month of August.  In the City of Barrie, detached homes averaged $515,922, down from July, but still up by 14% from August of 2016.  Prices in Essa and Innisfil also decreased slightly over the month previous.  However, prices in Oro-Medonte and Springwater soared - not only over the previous month but the previous year!  Prices there averaged $717,906 for Oro-Medonte, and $774,716 for Springwater.  It will be interesting to see how the remainder of the year unfolds - hopefully the balancing act will continue so that buyers are still able to purchase their dream homes! 

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