New issues arise daily, and participants and brokers must adjust at a moment’s notice
By Joseph Marovitch
October 1, 2026
In today’s market, new issues arise daily, and participants and brokers must adjust at a moment’s notice to what comes. One day a war breaks out in Europe, the next day a war breaks out in the Middle East, the next a friend becomes an adversary as tariff wars divide allies, the next, Canada is joining the European Union (EU) as an associate member to open new trading partners and support and solidify NATO in possible new conflicts with the U.S.
All these issues affect global market inflation and interest rates today. Real estate transactions are far more complicated than they used to be.
Without knowledge of current global issues, the property’s value may drop significantly, making it difficult to sell later.
Buyers, sellers, and even some professional brokers think selling means pricing the property based on comparables, listing it, and letting it sell itself. Buyers think that if they can secure a good mortgage rate and negotiate an acceptable price, they have made a good investment. This strategy is short-sighted in today’s market and can lead to future problems, such as carrying costs rising enough to make the property unaffordable. Without knowledge of current global issues, the property’s value may drop significantly, making it difficult to sell later. It is like driving a new sports car down a country road without caring about what’s ahead.
Knowledge is valuable in any market. When buying a property, these are the first questions to ask:
- Is the property in good condition? Have it professionally inspected.
. - What are the current carrying costs? Review all recent bills, including taxes, utilities, insurance and condo fees.
. - Is the asking price fair? You or your broker can run a market analysis of comparable properties recently sold in the area.
. - Are major expenses coming? Find out whether the house needs repairs soon or whether the condo has any planned special assessments.
. - Are there good schools, stores, restaurants, transportation or, in my case, dog parks and vets nearby?
. - Why is the seller selling? Is it to downsize, upsize, financial reasons, or personal reasons? Are there 30- or 60-day assessments for unpaid taxes, unpaid mortgage payments or rights registered on the property for unpaid services of a plumber or contractor? Is there a divorce in process, have the parents passed away, or has a partner passed away? This information helps you negotiate the price. These issues are ones that a buyer would require a broker, lawyer or notary to determine.
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Knowledge is power and leverage in all negotiations
The other concern when buying or selling, and this is long-term thinking to avoid financial problems, mitigate risk and, with full knowledge, make proper decisions and prepare strategies for the present and future, is:
- Will a war that slows the supply chain of goods and services cause carrying costs to rise due to inflation and interest rates?
. - Will a global tariff war increase carrying costs and devalue the property?
. - Can I easily sell my property if I must, or will global issues and local elections cause buyers to hesitate?
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With this knowledge and more, one can decide whether to proceed, adjust their criteria, maintain the asset until difficult times pass, buy insurance for these risks, purchase the property through a corporation to protect against creditors in hard times, and more. There are ways to purchase in good and bad times and take advantage of the opportunities that always arise in challenging times.
There are ways to purchase in good and bad times and take advantage of the opportunities that always arise in challenging times.
With this information, sellers can create strategies to attract buyers in challenging times, such as attractive pricing that motivates hesitant buyers to visit the property, increases interest, and increases the sale price. The next strategy is targeted marketing, matching the property’s location and price range to potential buyers based on their current location, age, family status, and income. This strategy focuses on buyers who can afford the property. This reduces the time to sell, shortens the condition period, and brings all parties to the notary sooner.
The information in these articles is summary. If you have questions, comments, or would like to discuss this in more detail, please refer to the comments section at the bottom of the page or contact me directly. To view past articles, click here.
State Of The Market
According to the Canadian Real Estate Association (CREA), home sales were down 6.9% in August. The reason stated is a new round of economic challenges, including new tariffs, ongoing global hostilities, unstable governments, etc. The Fed has warned of expected rate increases due to rising inflation and doubts about the stability of recent economic growth. It also says buyers are staying on the sidelines, waiting for the economy to stabilize. Meanwhile, inventory is increasing.
This news has pros and cons. The pros are that, even though property values have risen, increased supply and diminishing demand create the possibility of buying at lower prices. For sellers, there has never been a better time to use effective selling strategies. If you are an investor in multi-residential income property, you may be able to buy at 5 caps or higher, whereas the average cap rate in Montreal for a 10- to 50-unit-plus income property has been 4.5.
For those who can hold their property through the challenges, its value will spike when demand returns.
Note that in challenging times, when demand is blocked by global and local conflicts, demand is still there and growing with nowhere to go. For those who can hold their property through the challenges, its value will spike when demand returns.
Till next week, take care and have a wonderful weekend!
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Joseph Marovitch has worked in the service industry for over 30 years. He was first director of Camp Maromac, a summer camp for children, before becoming a real estate broker, where he applies the same values of reliability and integrity. You can reach him at 514 825-8771 or at josephmarovitch@gmail.com
