Hello,

I hope this finds you well and you had a good weekend, I'm glad to be back after a couple of needed days off, Please find below some important market information.

In the market, recent volatility in Europe in particular Greece , Spain and Portugal has had a positive impact on borrowing rates here in Canada. Bond yields have dropped significantly in last 3 weeks as it appears nervous investors sought a safe haven in Government Bonds and gold. This happened when the direction of the global economy came into question with Government debt default issues in Europe.

Some Market Numbers ( Invis Group):
Strong purchases in the bond market reduced bond yields in Canada to levels not seen since late February. Five year bond yields averaged 2.54% in late Feb and rose steadily to 3.20% by late April. We are now back down to 2.55%. What’s interesting is Canadian lenders view this reduction in borrowing costs as temporary, and have only marginally lowered their fixed rates by .10%-.20%. As such, we do not expect fixed rates to drop from current levels.
· With China re-assuring markets that Europe is a key investment market, we did see stronger capital markets at the close of business last week.
· In reviewing comments by analysts, we expect continued market volatility as debt issues continue to affect certain markets. This being said, the fear of a double dip recession seems unlikely according to many analysts.

Closer to home, The Bank of Canada meets this Tuesday and we expect them to raise Prime by 0.25%. On the domestic front we are continuing to see positive economic numbers especially in BC. BC has seen strong migration, a recovering labour market, and year over year increases in retail sales. With more listings now on the market, we have moved into balance. This is a great time for clients who were uncomfortable with the competitiveness of the seller’s market to reconsider entry into the market. Based on comments this week from BC’s Regional CMHC economist Carol Frketich, CMHC is forecasting a price leveling in the Vancouver market, and a balanced market into 2011. Volume of sales in our region are forecast to remaining slightly higher than median average of 87,000 units.

Adan's Point of view: So we now know their has been some fears in Europe about another recession looming to hit Europe hard, however European Countries have reacted extremely well by voting to remain strong together and have backed each other with some strong financial packages that will help them avoid another downturn. China, a strong European trading Partner has also pledge to back their European partner, all these signs of partnership have made world markets including home react positively to the news and mayor Analysts believe another big recession is unlikely a point of view I agree on.

Local Markets have balanced since last month I have seen better inventory hit MLS in the last couple of days and I expect new buyers and move up transactions to increase as slowly interest rates go up and many buyers with pre approvd rates would like to jump in before rates start to push affordability.