Hope you’re all doing great !

Can anyone predict this weather or what?!  Am I right?!…Okay…okay…I’ll get to it 

For those who are keeping track – Home prices are down 15% – 30% since the peak in February !  

Did I mention the NDP passed the “Cooling Off Period”?  And we still have no specific direction – only complete uncertainty? 

Are there some homes on the market receiving 10 multiple offers?  Yes!  Are there homes sitting on the market for 90 days without a single showing?  ALSO yes!

It’s the Wild Wild West out there folks and now, maybe more than ever, you should be discussing your Real Estate situation with your Family, Financial Advisors, Mortgage Brokers and of COURSE, REALTORS! (Aka US cuz you’re awesome and obviously already our clients or clients soon-to-be !)

My Summary Explanation:

While the market has come down hard and fast recently, it’s important to consider the previous 2 years of COVID Fiscal Policy and the inflationary effects it had on home prices; 60% – 75% increases in home valuations in 22 months isn’t sustainable.  The valuations were artificially raised through politics and they are now artificially decreasing due to politics once again.  Inflation is at near-record highs and even more interest rate hikes are on the horizon; say economists on both sides of the aisle.  We’re likely in for the long haul of prices continuing to decrease for another 6-12 months unless there are some drastically different politics (For example if/when the Republicans win Senate/House in November – that could perhaps indirectly lead to our Country’s fiscal policy changing based upon US policy).  There are also many wise Real Estate experts predicting this could go on even longer and even more severe… but I hesitate to believe that there is the political will for that – it doesn’t seem as realistic.  And then there are others who are telling you this is just a “blip on the map.” They say with Trudeau’s record-breaking immigration numbers (431,000 this year alone) surely this influx of people need places to live – and the law of supply/demand would kick in and increase the demand side. There may be merit to this argument however I think the people that state this as fact lack the context of a history book.  From 2001 to 2018 we’ve had migration from 220,000 to 310,000 per annum.  Do any of you remember 2007-2010?  How about 2015-2018?  If you plot the migration numbers on a chart with home valuations – I assure you they are not correlated.

This is one time where things are so volatile and things could change at any day that I hesitate to give general advice.  Exactly what you didn’t want to hear right!?  Please before you hit the unsubscribe button – if there was anything in this update that was of interest or you just want to chat, reply back to this email and I’d love to set up a phone call!

Cheers Everyone!

PS – Here’s a funny meme to cheer you up 

-Corbin