Strategies for an uncertain market

Making real estate decisions during uncertain times: Advice for buyers and sellers

THE FIRST QUARTER of the year was one where we struggled to keep up with current events. The prime minister resigned. A federal Liberal leadership race began. Donald Trump became president and immediately attacked Canada with tariffs and threatened annexation. Doug Ford then called a provincial election and was re-elected with another majority ― his main message being he needed a mandate to take on the American threat. A new Liberal leader was anointed, a new cabinet sworn in and a federal election called for April 28. All the while, Liberation Day came and went, tariffs went up and down, the auto industry was shaken to its bones and we lost our neighbour to the dark side.

What happens to housing in tumultuous times like these? Evidence suggests the volume of trades falls by about a third. Prices hold steady. Inventory stays high but new listings slow as compared to historical numbers. It doesn’t appear the economic consequences of this tumult have filtered down to the real estate market yet.

World U.S. tariff day was April 2 (Liberation Day if you’ve switched to the Gulf of America), but Trump didn’t wait for Liberation Day to attack Canadian cars, aluminum and steel. The uncertainty we now live in seems unprecedented in my recent memory. We worried about a global financial meltdown in 2008, but that was short lived. We worried about Y2K when the century flipped over. We worried about the oil shock of 1974 when OPEC found its leverage. Finally, you can go back to October 1962 when for two weeks the Cuban Missile Crisis threatened our existence.

The times we now live in feel most like the world in the 1930s. Democratic rule was under threat, autocrats were on the rise, countries were militarizing and forming alliances and the threat of world war felt ominous. After two decades of rather calm, steady economic growth and political stability, we really aren’t prepared to manage this new, threatening reality. We struggle to make sense of the Minecraft movie mayhem ― let alone an existential crisis across our southern border.

As home sellers and buyers, what are we to do? As a seller, list your home ASAP before further uncertainty causes increased disruption. The large number of listings (pushing five months of inventory) and limited demand (purchases down about a third) suggest prices won’t stay elevated forever. There is more likelihood of price drops in the future than price gains. We are headed into a recession, and possible stagflation ― where rising inflation and high unemployment coexist.

As a buyer, you have much of the power. Find the home you want with the terms you want and with the buying conditions that make sense for you. There is still competition on low-priced, entry-level housing, and for rare gems in established neighbourhoods. Get a real estate professional working on your side and enjoy the shopping process. Be ready to pounce on the perfect home. Don’t try to time the market ― just be glad you landed your home at a price you can afford ― and then watch all the disturbing news from the comfort of your lovely new living room.

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: 1 Rathgar Street
MLS number: X12046878
List price: $309,900
Days on market: 19
Size: 5 bedroom, 2 bathroom, 1,500-2,000 square feet
Listing agent: Nathan Blanco, Salesperson, EXP Realty

High

Address: 427 Regent Street
MLS number: X11989459
List price: $1,679,000
Days on market: 48
Size: 4 bedrooms, 4 bathrooms, 3,000-3,500 square feet
Listing agent: Ashley Winder, Sales Representative, Sutton Group – Select Realty

London North

Low

Address: 148 Adelaide Street North
MLS number: X12016792
List price: $384,999
Days on market: 33
Size: 3 bedroom, 3 bathroom, 1,500-2,000 square feet
Listing agent: Tony Mann, Salesperson, Homelife/Miracle Realty Ltd.

High

Address: 864 Clearview Avenue
MLS number: X9298104
List price: $3,995,000
Days on market: 223
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: 162 Chesterfield Avenue
MLS number: X12052698
List price: $379,000
Days on market: 14
Size: 3 bedroom, 1 bathroom
Listing agent: Heather Jonhston, Broker, Re/Max Centre City Realty Inc.

High

Address: 9385 Elviage Drive
MLS number: X12002246
List price: $3,490,000
Days on market: 41
Size: 5 bedrooms, 7 bathrooms, 3,500-5,000 square feet
Listing agent: Ashley Winder, Sales Representative, 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.