We here at Buy Sell Love Durham, Lindsay Smith and Wendy Starr have had the best start to a year than any in the past decade. We hit the ground running in early January and it paid off. However, and I mean a big, however, here we are at the first of February with a slate of tariffs that are “threatening” our country. Having had a career spanning 40 years selling homes I have seen a few challenges.

• 15% mortgage rates. (1994.)
• 27% drop in values. (Over a year 1990-1991.)
• More homes being sold by banks than homeowners. (1991-1994.)
• NAFTA being negotiated – twice.
• 2008 downturn in the USA market causing issues in Canada.
• A foreign Buyer tax implemented in Ontario that plunged the Real Estate market into a downturn.
• Covid stopping the market – starting the market – heating the market up to a frenzy.
• 10 consecutive mortgage rate increases in one year.

One thing these market changes had in common was that they all resulted in leaving Buyers and Sellers with a feeling of “uncertainty” in the Real Estate market. Uncertainty is the undoing of any financial product, be they homes or stock and bonds. 

When a pool of Buyers sense uncertainty in the Real Estate market, they tend to sit and wait to see what may happen. Typically, the start of this cycle happens quickly and takes a long period before Buyers feel secure in making investments. With Sellers, when they see instability, unless they have a pressing need to sell, they, like their Buyer friends, sit on the fence waiting.

The threat of these tariffs have been known since last fall. The new administration announced tariffs then and repeated the implementation of them all through the holidays and in January. Still, with the threat looming Buyers and Sellers were active. In January, there were 370 homes sold from Whitby to Clarington. In fact, the average home in January sold over the asking prices! 

I have been taught lessons from the downturns I have worked through, both skills that apply to the sale of Real Estate and mindset skills on  how to approach adversity. Here are a few thoughts you may find useful.

1.  Be selective in where you gather your news. We are in an age of dis or mis-information and it can be challenging to dig through layers of information and personal opinions with many of the “pundits” offering nothing but personal grievances. 
2. Be careful to engage online. It is tempting for anyone who sees a post online that they know is not accurate or was created to get “clicks.” It is best to move on and not engage. In many cases, the responses to a comment you may make will be less than becoming.
3. Take the opportunity to help others who are struggling with the daily onslaught of news. If a family member or friend mentioned the world feels “heavy,” or are feeling overwhelmed, make a point of supporting them.
4. A quote I have believed in for decades applies to our current situation. “Worry about what you have control over.” Remember, when you worry about things outside of your control, you get frustrated and there is nothing you can do about the situation.

The most severe downturn in the economy that I have ever dealt with was the entire decade beginning in 1990 lasting until 1999. It was a tough market where homes were being lost to banks, agents were leaving the business and most everyone was struggling. However, I looked past our challenges and determined that there were still homes being sold and focused on what I could control. The 90’s were some of the most productive years I have had in my career. Just by focusing on the positives. 

Canada will be fine, our economy will withstand the shock of tariffs and Real Estate will continue to be a trusted investment.

If you are a skeptic, let’s review what happened after the 2008 USA drop in values. By 2010 the average home in Toronto dropped to a low of $431,000. As of the end of 2024 the average Toronto home sold for $1,061,000. If we focus on the long term we will be very well taken care of. 

If you have questions about how the tariffs will impact the Real Estate market, I can be reached at lindsay@buyselllove.ca or 905-743-5555.
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