Have we hit the home affordability ceiling?
Have you noticed? The market is turning.
I’m not referring to the condo market, where we’re already seeing a drastic reduction in investors’ appetites. I’m referring to the low-rise market— it may not be common knowledge yet, but I predict the period we’re about to enter won’t be so hot anymore.
The why doesn’t really matter
This spring, we’re seeing lower traffic compared to last spring, due to increased resistance to Ontario’s ever-escalating prices. Have we hit the affordability ceiling? Is the government’s bad press about the new homes market to blame? Or are the new, tightened mortgage rules responsible?
More than likely, it’s a combination of all three factors. Ultimately, however, the “why” doesn’t matter. We can do nothing about the “why.” All we can do is try and solve the problem.
It’s happened before
We’ve all known bad spells before. This old dog has survived three of them already. For example, after 2007 (which was the best year ever), the market simply died in September 2008. A lot of people were scared, yet it all sprung back in the spring of ’09.
So while a rosy past may not seem comforting, it’s helpful to remember many of us have survived storms before. The world didn’t end then and it won’t now.
The answer: more than pretty faces
Ironically, BAM’s built for bad times. This is why part of me wishes for bad times. It keeps us on our toes. It proves to our clients our knowledge of the industry and our sound strategies have helped them build a solid foundation, one that will allow us and them to not just to survive, but to continue to do well.
Because we rely on brains and not just on ads with pretty faces — because we’re all about a solid strategy and a thorough knowledge of the industry, our clients are well prepared. In fact, they’re actually in a good place for what lies ahead.
Now I turn it over to you: do you agree things are about to get tougher?
JohnAmardeil.com 