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Real Estate Talk:
The market’s moving barometer

How to manage the real estate market’s moving barometer

By Joseph Marovitch

August 17, 2023

The real estate market is constantly changing due to factors not in our control, such as wars, pandemics, climate threats, and politics. With all these moving parts, it is difficult to determine when to buy and when to sell. It is especially difficult for real estate speculators/investors.

All these factors cause interest rates to bounce up and down, supply chains to slow down one day and speed up the next, and spending to increase and then decrease, and all this is happening much faster than ever before.

The real estate market is constantly changing due to factors not in our control, such as wars, pandemics, climate threats, and politics.

The question is how to manage this if you are in the market to buy or sell. There is no definite answer for investors and speculators. The world is too fluid and unpredictable right now.

However, for buyers and sellers searching for a residence to live in, there is certainty in what is known presently. What we can know now is what interest rate we can lock into, what the price of a property is now, what the cost of utilities is, and what the cost of goods and services is at this time.

We can know all these things now, but we cannot be certain of what comes later. We can speculate that interest rates, inflation, property values, carrying costs, etc., may rise or fall. However, speculation today can be risky.

If buyers/sellers are prepared to gamble and risk winning or losing, then so be it. However, for those simply searching for a place to live or downsize, if the current interest rate is affordable, then lock it in, sell now, or buy at the current market rate.

If the current rate and price are not within the buyer’s budget, then go with the flow and do not tempt fate.

‘… if you don’t have to sell and the market is not favourable, then don’t sell. In other words, let common sense and logic prevail in taking a decision rather than a gamble.’

In the past, before the pandemic, war, and crazy politics, we could, with a degree of certainty, know what the near future holds in store, but that is not possible today, so we work with what we have. For sellers, the rule should be, if you don’t have to sell and the market is not favourable for you, then don’t sell. In other words, let common sense and logic prevail in taking a decision rather than a gamble.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: Preparation for the fall market


State of the market

Bank of Canada rate today: 5%
Canada inflation today: 3.3%, up from 2.8%

The inflation rate rose from 2.8% to 3.3%. This means we can look forward to another interest rate hike by the Bank of Canada. When interest rates and inflation rise, property values drop, and so does the purchasing power of the dollar.

‘There is buyer demand but not enough supply to purchase. All these factors mean prices will continue to rise but slowly.’

However, there is demand for property along with a housing shortage. The rental supply is low, and rents are high. There is buyer demand but not enough supply to purchase. All these factors mean prices will continue to rise but slowly.

Have a great week!


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Joseph Marovitch - WestmountMag.ca

Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep-away summer camp established in 1968. Joseph applies the same strengths of caring for the families, such as reliability, integrity, honesty, and a deep sense of protecting the interests of those he is responsible for, to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or josephmarovitch@gmail.com


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