Existing Home Sales & Bank Of Canada Cuts
Summary: Canada lowers to stay in central bank step and stoke "tame" inflation.
Existing Home Sales shows the downturn continues in full swing.
Bank of Canada Rate Announcement
The bank lowered 50bps to 3% to revive an economy that's growing at its slowest pace in 16 years, and signaled more easing may be needed in the medium term.
The bank cut its 2008 growth forecast to 1.4%, the lowest since 1992, from a January prediction of 1.8%, and said inflation will stay below their 2% target until 2010.
The Canadian CPI "advertises" a 1.4% increase slower than U.S. inflation of 4% and German inflation of 3.3%.
Existing Home Sales Mar -2% at 4.93M vs prior 5.03M Full Report
Inside the number: Yoy -19.3%; Yoy median sales prices -7.7%; West -14.7%. Supply +3.1%; +40K at 4.06M, up to 9.9 vs 9.6 months; Yoy +32%.
SFR -2.7% at 4.35M; Yoy -18.4%; Condos -25.5% Supply +3.3% at 9.5 vs 9.2 months; Yoy +31.9%; Condo supply +42.2%. Yoy SFR Median Price -8.3%; Average Price -7.1%.
Mark Zandi, chief economist at Moody's Economy.com:
"The housing downturn continues in full swing. Potential home buyers are sitting on the sidelines. They do sense that prices are going to go down further."
Existing Home Sales shows the downturn continues in full swing.
Bank of Canada Rate Announcement
The bank lowered 50bps to 3% to revive an economy that's growing at its slowest pace in 16 years, and signaled more easing may be needed in the medium term.
The bank cut its 2008 growth forecast to 1.4%, the lowest since 1992, from a January prediction of 1.8%, and said inflation will stay below their 2% target until 2010.
The Canadian CPI "advertises" a 1.4% increase slower than U.S. inflation of 4% and German inflation of 3.3%.
Existing Home Sales Mar -2% at 4.93M vs prior 5.03M Full Report
Inside the number: Yoy -19.3%; Yoy median sales prices -7.7%; West -14.7%. Supply +3.1%; +40K at 4.06M, up to 9.9 vs 9.6 months; Yoy +32%.
SFR -2.7% at 4.35M; Yoy -18.4%; Condos -25.5% Supply +3.3% at 9.5 vs 9.2 months; Yoy +31.9%; Condo supply +42.2%. Yoy SFR Median Price -8.3%; Average Price -7.1%.
Mark Zandi, chief economist at Moody's Economy.com:
"The housing downturn continues in full swing. Potential home buyers are sitting on the sidelines. They do sense that prices are going to go down further."
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