A Candid Conversation

A Candid Conversation By Theresa Grant Real Estate Columnist A Candid Conversation By Theresa Grant Real Estate We have always had three markets when it comes to real estate in Canada. The buyers’ market, the sellers’ market and a balanced market. Awhile back, I coined a new term for the market we seem to be in. The Trump market. What exactly is the Trump market you ask? Well, it’s a market where the interest rates have really come down nicely considering where they were a year ago, house prices are down 22% from their peek during Covid-19, in fact some absolutely stunning homes that would normally be on offer for well over a million dollars are now being offered well below a million dollars. It’s truly astonishing to see what some of the more palatial mansions of old Oshawa are going for in this market. Why is this the case? In a word, tariffs. Donald Trump’s Tariffs have cast a cloud of fear over Canadian workers to the point that those who were thinking about buying when the interest rates dropped, seem to have completely abandoned the idea. So, while we would have called this a buyers’ market a few years ago. There is definitely something that keeps the buyers from buying. That is the underlying fear of losing their jobs in this very uncertain time. I have heard many stories over the years of people who signed the mortgage papers one day and were laid off or let go the next. Nerve wracking times to be sure. Some real estate agents are reporting zero traffic through their open houses on weekends. That in and of itself screams volumes because even when you’re not necessarily looking to purchase immediately, it’s always been something that people who are intending to purchase at some point enjoy doing. They get out and look. The news is full of reports that housing starts have collapsed, prices are down, the volume of sales is down. Interest rates will continue their downward trend over the next year, but will that make any difference whatsoever? It will help the homeowner who is renewing their mortgage next year, but it will not do much to convince the would-be homeowner that the water is fine and to jump on in. I will admit I have never seen a market like the one we are currently experiencing. That being said, the observance of human nature never disappoints. I find it truly fascinating to see how people behave in different environments, and this is no exception. One thing that stays with me and has since I was a child is a saying that my uncle had. He always used to say, “this too shall pass”. I have brought that to mind many times over the years and firmly believe that it is something we can take comfort in when things are uncertain.