Monday morning briefing: U.S. real estate demand building
Canada’s parliament returned last week as the Liberal government gave its Throne Speech on September 23. The message was clear: do “whatever it takes” to help Canadians and the economy get through the COVID-19 pandemic.
The ambitious plan will likely cost billions, but it will provide much needed support to Canadians and businesses. More support will also be provided to provinces for better testing. The government plans to bolster employment by making a significant investment in infrastructure and other areas of the economy. While the government revamps employment insurance (“EI”) and ends CERB, it will look to provide the Canada Recovery Benefit for those who don’t qualify for EI but are still struggling.
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Chart of the week: U.S. real estate demand building
U.S. real estate activity came to a near halt in response to COVID-19 lockdowns. Pent-up demand, low mortgage rates and a shift in living arrangements, however, are contributing to a swift recovery in the U.S. real estate market.
As more people shift to work-from-home arrangements, they are moving into houses outside of big cities, which has increased demand for housing, including previously owned and newly built homes. Existing home sales rose to 6.0 million units in August, the highest level since 2006.
Used with permission of Bloomberg Finance L.P.
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