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#Written by David Tam, 1999.           #       
#davidkftam@netscape.net Copyright 1999#  
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From tamda@ecf.toronto.edu Mon Jul 12 18:22:57 1999
Date: Mon, 1 Feb 1999 13:59:25 -0500 (EST)
From: David Kar Fai Tam 
To: APS 424S 
Subject: #9-02/02/99-"25% plan to buy home in 2 years: survey"


The Globe and Mail, Wednesday, January 27, 1999. B6.

    This article reports on a survey result showing that the 
housing market looks pretty bright in the near future.  According 
to a survey, 25 % of Canadians planned to purchase a home within 
the next 2 years.  Almost 40% of those between the ages of 25 and 
34 are planning to do so.  BC, Alberta, and Ontario will see most 
of the benefits. As well, the sale of new homes for the Greater 
Toronto Area hit a ten year record high in 1998.

    These conditions are encouraged by low interest rates, which 
means it costs less to take out a mortgage and buy a new house.  
Also, the announced provincial and federal income tax cuts will 
help increase disposal income and further encourage the housing 
market.

    I believe that housing market activity can provide a fairly 
general sign of how the economy is doing.  It's a very good sign 
that so many Canadians are thinking about house purchases in the 
near future. It means they have had steady employment, have saved 
quite a bit a money, have a high standard of living, and have a 
high level of disposal income.  Acting much like the construction 
index, which shows actual construction statistics, this indicator 
probably is a good indicator of future economic trends rather 
that immediate trends. If Canadians plans two years in advance, 
they are predicting fairly rosy pictures and believe the economy 
will remain good.

    The construction and purchase of new homes drives quite a 
bit of the economy. For instance, furniture and various services 
will become higher in demand. Construction of related 
infrastructure also increases, industries providing raw 
construction materials will increase, new businesses to support 
the new housing developments will be started, etc. This type of 
housing activity triggers a lot of other economic activity. This 
will mean good news to the Canadian businesses.

    In terms of demographics, there is probably a lot of useful 
marketing information that can be extracted. Trends due to more 
family living in houses rather than rented apartments, may mean 
changes in consumer buying habits. Smart Canadian entrepreneurs 
and existing business will realize new opportunities due to these 
changes.  

    Source: geocities.com/siliconvalley/campus/9640/4thYear/Business

               ( geocities.com/siliconvalley/campus/9640/4thYear)                   ( geocities.com/siliconvalley/campus/9640)                   ( geocities.com/siliconvalley/campus)                   ( geocities.com/siliconvalley)