It has been a tough run for new home builders in this country but there is some sunshine in the forecast and it is coming from the south.
That’s the premise advanced in the latest report written by Peter Andersen, a former deputy chief economist at the Bank of Canada, who now prepares a monthly assessment of the economy for CEOs and executives in TEC Canada.
His latest report says homebuilders here need to look south to the US to see what lies ahead. Down there, home building has resumed after a hiatus similar to the one gripping Canada where high interest rates are deterring new construction.
It is also the driving force behind the federal government’s new-found interest in housing. But, according to Andersen, pent up demand in the US has broken the flood gates and buyers are looking for new because they can’t find used. The same will happen here. All we need is the central bank to begin cutting rates, likely in the next three to six months. In the meantime, though, all this demand in the US is pushing up lumber prices.
