Conversations That I’m Having At My Daughter’s Playground
We are living in arguably the strangest economic time we have seen in many generations. What I have coined “the southern tradewinds” have been blowing chaotically for quite some time now. We all knew that tariffs were coming (remember all of these electoral speeches?), but I would think that it’s fair for all of us to have thought that there was a logical plan, a roll-out that would not upend the global economy. Well, I must admit I am still waiting to see what the plan is. The approach seems to be emotionally driven and without much consideration for anyone outside of a handful of people’s ambitions.
I want to start by saying this is not a politically minded write-up; this is a matter of market impacts. Specifically, how the above has impacted consumer confidence in not only the financial markets but in the real estate market here in Toronto. I want to touch on some not-so-uncommon conversations that I have been having with clients over the last couple of months and with people at my daughter’s playground. The topics that are impacting us.
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Insights From the Community
As we watch our little one explore, engage with the world, and meet new kiddos, we are often in new conversations ourselves with other parents. As parents, your focus is on your child’s needs today and for the future. It’s an underlying basis of all things parenting, balancing today and tomorrow. The always enjoyable focus on laughter about and curiosity about our kids has been pivoting more and more recently to what matters within the family home. I can’t say that the issues are broad in range.
There are question marks about where the US is headed, the decisions that they are making and their impact on the global economy, the taunting of becoming the 51st state, and our desirable natural resources. Do you want to buy American right now? Can we afford not to buy American? Is it even feasible to avoid US products? Where are your travel plans this year?
It’s interesting how many people have decided that Canadian travel this summer is the way to go for them. There is a patriotism that has stepped forward in a manner that we never thought would be so strong in opposition to another’s values. That hasn’t been the Canadian way; it’s always been a point of internal pride for being who we are, not being different than another.
Add in the fact that the Bank of Canada did not lower the overnight lending rate for the first time in a year, and there is a further element of financial strain felt in the household for those with variable rates (which is the majority of mortgage holders).
“Tariff Negotiations” are to begin once we have elected a Prime Minister here in Canada, and that is to happen on April 28th.
Equity market volatility is another. While those of us fortunate enough to have funds in the market and are of an age where there is no reliance on retirement income (remember, we are in the earlier days of patenting), there are many people who require those funds in retirement. There is a fog that is hard to see through right now.
Looking for more insights into Toronto real estate? Check out these related posts from my blog!
- Where to Buy A Toronto Condo If You Don’t Want To Live Downtown
- What Are Must-Make Repairs Before You Sell Your Toronto Home?
- Is Rosedale A Family Neighbourhood?
The Botton Line: We Will Get Through This
We as a species are resilient – we will get through this. How else could we have survived being chased by sabretooth tigers, harnessing fire to cook food and living in caves?
There is a great deal of noise in the world right now. The previous paragraphs are only a few of the many things that are impacting the world right now. But here’s the thing, we will feel solid ground under our feet. We have been through a lot in life. This, too, shall pass. We are in the early days of change. Change is hard, but with time, we will settle into what we know and realize what we can do to accept, change and adapt along the way.
There is no doubt that we are in strange times, but I can assure you that in a few years we will be well on our way, and the confidence will have long returned.
Getting clear on where you are today and what you need and want for tomorrow is all you can do. Make the wisest decisions you can today, tomorrow will play out as it does, and from there, you make another decision with your plan in mind.
There is a great deal of uncertainty in the air.
What Does This Mean For Real Estate?
While we expected a great real estate rebound in Toronto this year, January suggested that we have hit a slowdown due to the disruptions detailed above. But here’s the thing: we are seeing some great opportunities. If you are a buyer and have the funds, consider your master plan, and execute it – there are great opportunities to buy. We will look back on this time as an excellent opportunity to buy. While some neighbourhoods are very strong, others are less robust in sales. Condos are now discounted.
Having a clear idea of what you can afford and basing your decisions on that is key. The next step is to have the courage to take that step. We ensure that the right conversations are had so that clarity and confidence are in place. We do not focus on the one transaction. We focus on what you need and want today, as well as being here for you for the decades to come. The only way that the relationship stays intact is by having relational conversations with you as the focus. We pride ourselves on the relationship, not the transaction.
We will get through this; it’s a matter of asking the right questions and focusing on the big picture with trusted advisors.
This, too, shall pass.
Have questions about buying or selling in today’s market? I have answers! Reach me by email at ryan@ryanroberts.ca or call 416-925-9191.
