Fall 2020 – It’s time for changes!

2020 is nearing the end and  I think we are all ready to say goodbye to 2020.  Covid19, Lock downs, Job losses, protests, murder hornets, forest fires, snow in mid October with record cold temps,  the list seems to be endless.   As a whole Canada  has done well and really come together as whole to keep our Covid19 numbers low and our families and neighbors healthy for the most part.  But it hasn’t happened without a cost.

As we all know Covid19 has caused havoc to local businesses, bringing job losses, reduced hours, small to no profit margins, and for some it has caused them to close their doors for good.   It is truly tragic.  This has happened in every town across the country.  To date the economic impact has largely been masked by government programs like CERB, and the mortgage deferral programs that have helped to keep some momentum.  The Canadian Government has been buying up Canada bonds at a rate of $5 billion per week, and dropped interest rates to help maintain market liquidity.  Basically we’ve used every tool we can.  The second wave is here and looks to be intensifying with each passing week.  I think we are ready for it and lock downs will not be imminent, which bodes well for the economy, but widespread infection does not.  We all need to do our part to keep things moving in the right direction.

The Canadian real estate market has been the economies single bright light.  Pent up demand from buyers, combined with minimal listings and super cheap interest rates have propped up home prices and sales activity.  The Bank of Canada has said they expect interest rates to remain low thru to 2023 which should help deter any reversal of fortunes in this market in the near future.  We’ll be watching to see if job losses result in mortgage defaults, as it could be a trigger that changes this outlook.

I hope you all are finding your way thru 2020 and as changes come, and they will, I hope they are more on the positive side of things as we move forward.