Stealing the title of a charming 1980 movie about a Coke bottle falling from the sky, I am giving some thought to nearly 3 months of a really odd real estate market in Ontario
Some of what's happening is really easy to understand
2/
Lock people up for nearly 2.5 months and they need to buy stuff they couldn't
A bank exec told me July was an all time record for their car financing division
Couldn't buy cars for 2 months need to catch up
Guess same can be said for houses
3/
Crazy low mortgage rates
Desire to have more space
Work from home forever
Can't travel = need cottage
Combine these factors with the RE supply issue in parts of Ontario and prices go up
But there are some crazy parts to this boom
4/
Massive Unemployment
Travel, Tourism, Hotel, Restaurant, Bar, Convention, Fitness Center, Movies, long list
And while some are restarting its very slow going
This means some folks should be adding to RE Inventory by selling
5/
And just so we don't forget immigration and foreign students will be at a modern low for the next 12 months
So its a bit of a RE fantasy land
6/
Followed by a 15% price drop in 2018 in some areas
I am guessing some areas are up 15% to 20% so far in 2020
There is a big difference between 2016 and today
7/
Old houses to tear down and flip
Old houses in gentrifying neighborhoods to hold a year and flip
Semis to rent for a year and flip
That's not happening now, people are buying homes to live in long term
8/
So it does seem crazy but time will tell, a vaccine could change unemployment fast, immigration and foreign students will return some day
9/
But when Federal financial supports vastly reduce next year what happens?
Might be crazier