The trade war is here

Trump’s trade war on Canada has finally begun: What it might mean for you and your home

IF UNCERTAINTY WAS your concern, at midnight on Monday our future became dangerously certain. Canada is being attacked by an executive action of the U.S. president. The intent is to inflict economic harm on our country ― to weaken us and make us more vulnerable to future assault, whatever form that might take. Retribution will be costly, inflationary and complicated, likely leading to further retaliation.

This separation with our neighbour is definitive in that trust has been broken. The relationship will never be the same ― certainly not for a generation. Canada will realign its economy, trading more internally and forming alliances further afield. We will become smaller but more competitive. This reorganization will hurt. Our standard of living will be impacted. Many industries will be severely affected. Unemployment will rise ― dramatically.

Just in case you were wondering what this realignment of our North American pact is going to mean ― you can see I have a stark view of the consequences. Our housing market has been suffering under the weight of economic uncertainty for months, and that continued through the previous month of February.

House sales in London totalled 322 in February, down 25 per cent from last year; down 50 per cent from two years ago; down 15 per cent from a decade ago. The point being not many houses changed hands last month ― the fewest in recorded memory! A total of 705 new listings came to market ― more than double the number that sold. As of a week ago there was well over four months of inventory on hand, again higher than anytime in the last decade.

The median price didn’t change at $587,000 and the average price went up 5 per cent year over year to $641,000 ― so prices remain somewhat sticky, as there’s no point lowering prices for demand that doesn’t exist.

As for the future ― no one knows. Regardless of what the orange-haired monster decides or changes, it can’t be predicted, and we must assume the worst. That torture of uncertainty, the risk of economic downturn, the inevitable loss of jobs, the increasing cautiousness of lenders ― all this will lead to an ongoing anemic real estate sector.

So, what are you to do, as a seller or buyer in this market? First, recognize you’re buying and selling in the same market. What it might cost you as a seller you may gain as a buyer. Second, take actions that suit your personal circumstances now, because you simply can’t predict the future. If you have a listing, price it aggressively and be one of the few transactions that is secured ― thus you don’t have to allow future events to dictate your outcome. If you’re a buyer, be aggressive but be prepared in advance, and make sure your financing, insurance and inspections are iron clad before firming up a transaction.

We are the architects of our future. Be bold and decisive. No American products ― not now, not soon and not ever. No American travel ― keep your dollars at home, without exception. If you have property in the U.S., sell it. This is an economic war ― treat it as such. Become an expert on what is made, processed and developed in this great country. Buy a Canadian flag that was made in Canada. Pump your chest and wave the flag, but more importantly, get on the ice and drop your gloves.

Market analysis provided by Marcus Plowright, Sales Representative, A Team London. Marcus can be reached at 519-872-8326 or marcus@ateamlondon.ca.

High- and low-priced real estate listings around town this week

London East

Low

Address: 225 Simcoe Street
MLS number: X11982179
List price: $299,900
Days on market: 11
Size: 3 bedroom, 1 bathroom, 700-1,100 square feet
Listing agent: Monique Legault, Salesperson, Thrive Realty Group Inc.

High

Address: 1839 Parkhurst Avenue
MLS number: X10429127
List price: $1,699,000
Days on market: 106
Size: 4 bedrooms, 3 bathrooms, 3,500-5,000 square feet
Listing agent: Durga Prasad Aaripaka, Sales Representative, Century 21 first Canadian Corp.

London North

Low

Address: 253 Riverside Drive
MLS number: X11998774
List price: $499,999
Days on market: 1
Size: 3 bedroom, 1 bathroom, 1,100-1,500 square feet
Listing agent: Jeff Gard, Salesperson, Royal Lepage Triland Realty

High

Address: 864 Clearview Avenue
MLS number: X9298104
List price: $4,295,000
Days on market: 181
Size: 5 bedrooms, 5 bathrooms, 5,000-plus square feet
Listing agent: Michael Reis, Salesperson, Sotheby’s International Realty Canada

London South & West

Low

Address: 53 Ada Street
MLS number: X11901432
List price: $319,999
Days on market: 67
Size: 3 bedroom, 1 bathroom
Listing agent: Trevor Potter, Salesperson, Oak and Key Real Estate Brokerage, Inc.

High

Address: 1962 Kilgorman Way
MLS number: X11239795
List price: $2,759,999
Days on market: 98
Size: 4 bedrooms, 5 bathrooms, 3,500-5,000 square feet
Listing agent: Kim Mullan, Broker, Sutton Group – Select Realty

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Disclaimer: London Inc. does not guarantee the accuracy of the statistical data on this page. The data does not represent the listings of any one agent or agency but represents the activity of the real estate community in the area. Any real estate agent’s ad appearing is separate from the statistical data provided, which is in no way a part of their advertisement.