Real estate markets are not static items…they change (and the shifts can be rapid), as different elements come to the fore.
Renewed Sales
2024 saw renewed sales in October, November, December…with projections for 2025 mentioning continuing low inventory and potential for resulting price increases.
Since then, the early days of 2025 have seen the prime minister stepping down, a Liberal party seeking a leader replacement, an understanding that all this will result in a Spring federal election.
At the same time, the incoming president of the U.S., our biggest trading partner, appears to be serious about his 25% tariff hit for Canada. The premiers are not of one voice re response, and B.C.’s premier acknowledges that such tariffs would decimate the B.C. economy. Meantime, absence of leader/prime minister role federally means no unified voice for negotiations.
Markets do not like uncertainty.
These early days of 2025 are showing mixed signals and it may take until late April or May to see coherent outcomes in real estate activity.
The diminishing value of the Canadian dollar might be one reason owners are not wanting to be sellers…as a way of preserving capital through a real estate investment.
The Bank of Montreal (BMO) is stating that real estate outcomes may not improve markedly until 2029. Different reasons are given. Again, projections and trends can change quickly in any market driven sector and these concepts are not static reports…it is opinion.
Meantime, low inventory & buyer reluctance make it difficult for marketing decisions by realtors…and various marketing venues are noting less uptake.
The year has opened with unexpected shifts…always interesting.
Questions/comments? Look forward to hearing from you.
