HOMES + I N S I G H T
Is our Market going to Crash?
I continually get asked Julie D. Martin if or when this crazy Real Estate Broker market is going to crash. Because most people do think that it will eventually.
Instead of thinking about this conundrum as to whether this crazy market can continue, let’s look at the positives as to why we may be in such a hot market to begin with, as follows:
The comments such as “there is no way we can sustain this growth” come out of the mouths of many who have been locals to our area their entire lives. But many who have moved here in the last few years from other areas probably don’t see it the same way, as they don’t have stories of how much they paid for their first home in this area in 1963.
• We have some great neighbourhoods close to the 401 which is ideal for commuters
Will we sustain this growth? Can we? Maybe not at the rate of 30% per year every year, but it has been many years since our values have decreased in Waterloo region, and for good reason. In fact, many good reasons. In the big picture, what is considered “affordable” or “expensive” is relative. Our values are still quite affordable as compared to some other places in the world. And, although there are many places less expensive in Canada to live, they are also less desirable and have much less to offer in terms of employment or enjoyable activities. 40
• Our job market is among the best in the province • We have two world class universities • Public transportation is better than it’s ever been
I have to be honest – no one really knows the answer to this “When is our Market Going to Crash” question because no one knows what the future holds. But, sometimes looking at the past can give you clue of what may happen in the future. So, let’s go back to our most recent example of a hot seller’s market and look for some answers. Back in 2017, our previous big surge, I was asked same question about a potential market crash, and I told people then that I really didn’t have any definitive answers. I always try to get people to think a bit more introspectively, by asking them this question, “What if the market doesn’t crash. Then what?” Many people who were looking to purchase back in 2017 were told by agents that they should wait until
