Hello everyone,
It’s Suzanne Boyce the former owner, and while that may be the case, I’m not quite out to pasture yet. Though I must say, COVID has certainly made it feel that way some days!
We at PMG wanted to give everyone the heads up that the price of construction material is quickly on the rise due to a shortage of goods. This can be attributed to the following:
- The extreme slowdown that occurred during the initial lockdown caused a pent up demand in both commercial and residential construction.
- The general population has adopted home improvement as a replacement for vacations and other fun leisure activities that are now inaccessible.
In the following attachments, you will see Turkstra’s predictions and accumulated data from the last few decades. Read more here:
What That Means to Us
Purchasers
When you are buying in an already overheated market, and your purchase needs work, you may have to delay the project. Our main worry is a recession that could be deeper than expected due to Covid-19.
Current Homeowners
Be prepared for rising costs and leave room in your finances to accommodate these changes. On a positive note, you will likely get through this just fine as long as a recession does not retract house pricing due to the heated market.
For All Clients
Do not carry debt outside your mortgage! Ever! That is the best way to stay safe. So, if you’re carrying lines of credit or balances in cards, call us and get tidied up. For many of you, your rates and payments may be a lot lower, making your life much more carefree!
The Great News
Do you remember when the Bank of Canada raised the interest rate 5 times in a row over 2018 – 2019? They did that because they wanted to be in a position to drop rates if we hit a recession. Thankfully, by raising rates as much as they did, they created a large cushion to fall back on. What’s more, when Donald J. Trump was pressuring the US Central bank (the Federal Reserve) to drop rates before COVID hit, the Bank of Canada did not follow them.
As a result, Canada was in better shape to handle a long recession and our recovery may be quicker than the US as a result.
In Summary
COVID19 has certainly created some complications and it’s not yet clear how big of an impact it will have on our economy. Be cautious of your purchases during this time while the market is overheated and be prepared for delays on your projects. For current homeowners, be future-ready and adjust finances for uncertain times. Last and most importantly, be optimistic. Canada is in a decent spot to endure a recession, it’s likely you will make it through this if you’re careful. If you do carry lines of credit or balances on cards remember to call us.
We’re here to help.
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