David Rosenberg, who is decidedly bearish the Canadian RE market, today points out that never before has Canada been more business-friendly in comparison to the US [21 Jan 2010, Breakfast with Dave]. Excerpts – “The downside risks and upside potential for Canada vis-à-vis the U.S.A. have rarely looked as compelling as is the case today.” … “Canada has been re-rated in eyes of the global investment community.” … “It is difficult to see, in this relative political setting, the Canadian dollar failing to remain in what looks to be a long-term bull market.”
Also released today, in the 28 June 2010 edition of The New Yorker, the Government of Canada business promotion ad shown below, featuring a picture of Vancouver.
Yes, this is potentially good for business in BC. And, if there was a closer relationship between fundamentals and RE prices in Vancouver, we’d see these stories as also being a reason to be bullish local RE. As it is, however, adding a modest amount of support to our foundations will not keep elevated RE prices that are resting on nothing but large volumes of fresh air. -vreaa