AS PAST experience has
shown, Canada’s real estate
markets can adapt to interest
rate levels similar to those
currently in place. Therefore,
residential and commercial
real estate activity should re-
main reasonably healthy in
most markets for the re-
mainder of the year, says the
country’s largest realtor.

A.E. LePage’s market
forecast is based on the belief
that the recent move to

higher interest rates is a tem-
porary situation indicating
the Canadian economy is
moving into a_ period
adjustment.

According to LePage presi-
dent William A. Dimma, in-
terest rates may move higher,
but in all likelihood not more
than an additional one per
cent between now and the
end of the year.

Responding to
**pessimists’’ who claim that
Canada is sliding back into
conditions similar to 198],
‘‘when inflation was taking
off like a rocket and interest
rates were not only tracking
inflation but gaining on it,”’

If you're reading this ad.
we're increasing your
awareness of what we

sell

If your child is playing
with what we sell,
you're increasing your
child’s awareness of
the world around him.

FAIR PRICES FOR GOOD PLAY

& FRIENDLY SERVICE EVERY DAY

Cooma quality ton
dont always cost vas
but they sure last boreer

STORE MoOURS
MOON 4 ‘

Vashi i rear

Dimma points out that it is
patently obvious that
economic conditions today
and then are totally different.

“Then, we were straining
the economies of both the
United States and Canada to
the utmost. Inflation was in
the 13-14 per cent range in
this country and interest rates
were in the high teens and
even low twenties. By con-
trast, we now have inflation
in the five per cent range and
a Canadian Prime of 12 per

cent — hardly a recipe for
strongly rising interest
Tates.”’

Today’s reality is that there
is a political/economic game

Park Royal
North

RENOVATION

AL

being played in the U.S., says
Dimma.

‘*The chairman of the
Federal Reserve Board is giv-
ing a strong signal to Presi-
dent Reagan and Congress,
in an election year, that
they’d better patch up their
differences and agree on how
they are going to reduce the
U.S. deficit. The deficit of
course is really why U.S. in-
terest rates have begun to
trend up in the first place.’’

And, says Dimma, this
pressure should be effective,
considering there will be a
U.S. election in approximate-
ly six months.

‘‘If there’s one thing likely

to make a politician quiver
and quake when he’s up for
re-election, it’s the prospect
of an economic turndown
just before election time.’’
As a result, the threat of
another one-half or even a
one per cent hike in interest
rates will be the catalyst that

- will force a reasonable coin-

promise out of some very in-
tractable

politicians, con-
cludes Dimma.
“It’s a high-powered,

high-level game and | happen
to think it will work. And, if
it does, it will defuse the in-
terest rate time bomb which
has most Canadian commen-
ltators spooked out of their

Jordans

| Interiors

Al3 - Friday, June 15, 1984 - North Shore News

Dont be spooked by high interest rates

minds.”’
Dimma notes that
LePage’s belief that the

economic negatives are short-
term is underscored by the
Company’s long-term com-
mitment to capital invest-
ment and expansion.

On the residential side, a
commitment has been made
tO open approximately 50
new branches across Canada
over the next three to five
years. As many as 12 new
branches will be opened this
year, while some 28 existing
branches will be given a ma-
yor renovation.

Expansion efforts related

A complete interior design service.

to commercial real estate ac-
tivity will be concentrated in
Fuller Commercial]
Brokerage Company, the
United States firm LePage
acquired in mid-1982, ex-
plains Dimma.

**There is a great potential
for us to grow in the huge
U.S. market, which we have
only begun to tap. So far in
1984, we’ve opened an office
in Austin, Texas and also
have moved to a full-service
office in Tampa, Florida.
Within the next six to 12
months, we fully expect to
open two or three more of-
fices in the United States_”’

Furniture
Carpets

Complete refurbishing starts July

Park Ruyal
North

922-9305

ENTIRE

5%%-60°%

Sofas, Chairs, Loveseats
Tables, Lamps, Accessories
“Fashion Leader’ Broadiooms
Taj Mahal Rugs from India
Oriental Rugs

Jordans |

Interiors

A complete interior design service.

A

Pew We spe seen

“4 Nhge Fee
a

a

y wal

Bank Cards and
American Express