So we see the unbelievable what appears to be the deal of the century when JP Morgan bought legendary Bear Stearns for the paltry sum of $2 per share, more then 90% off the Friday close. This may not be the last one.
Then we see the Fed drop the fed rate by .75% (some analysts had predicted it might fall a full percentage point). The projection seems to be that they will drop another .75% at each of their next two decision dates to settle in around .75%…WOW. In Canada it is an absolute certainty that we will see our Bank Rate drop .50% in the next meeting and likely .50% in each of the following two meetings. That is welcome news more home owners in a variable rate mortgage, you didn’t panic and lock in late last year did you?
Affordability of real estate in Calgary will be good and should help keep our market stable and hopefully avoid a continued drop in value.
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