Real Estate Isn’t a Simple Business

The Confusion Continues…

The residential real estate market is dynamic and unpredictable even under the best circumstances. It’s often impacted by external factors beyond our control, such as global economics and tariff policies. What often isn’t discussed is how emotions play in the residential real estate market, with fear being one of the most dominant emotions impacting buyers and sellers.

That being said, there are opportunities hidden in the chaos if you know where to look. This week, we’ll explore how savvy home buyers and sellers can make the best decisions amidst market fluctuations and why understanding market nuances can put you ahead.

Does Fear Impact the Market?

We’ve chatted about this in previous blog posts Issues 448, 449,450- we are living through very unpredictable times. In fact, I would argue that going back as far as 2016 we’ve lived in very unpredictable times. The first run up in prices in 2017 and subsequent correction, Covid, record low interest rates, and inflation all were highly unpredictable and caused widespread fear in the real estate market. We have become accustomed to having constant chaos not only in real estate, but our lives in general. The chaos this year is political. How is that any different from the chaos we’ve dealt with over the past 10 years?

All the events going on in our world today can, and do, influence buyer and seller behaviours- no question. The question we should be asking ourselves is, are we allowing those events (fears) to influence our decision to inaction, or are they guiding our decisions to action? There’s a difference between allowing outside influences to take over the decision process versus using those same events to frame a decision to have a positive impact on our lives.

We all want an easy button and smooth water for all our journeys. Life unfortunately doesn’t deliver that kind of consistency and the easy button doesn’t allow us to grow or truly prosper.

What doesn’t kill you makes you stronger- it may sound trite but it’s true! Look at any of your parents or friends that owned homes in the 1980’s and survived the 18% mortgage rates! Each generation seems to go through an era of trauma that could have serious consequences. Yes, some people make the wrong decision and pay dearly, that’s the risk we take in life. Some will choose to play it safe and won’t have the negative impacts and they won’t experience the possible positive consequences either. Another group will analyze the risks, make the decision and more often than not reap the rewards. This is why I have nothing but admiration for people that start up their own businesses and take risks because when they succeed, they not only win from a financial perspective, they win in knowing that they took the initiative and were prepared to do whatever they needed to succeed.

The choices around real estate won’t be life and death. Sure, some folks will buy and take on more than they can handle, suffer a loss and have to step back and start again. The vast majority that do step into the ring will in the long term have shelter, a home, and a solid foundation to build additional wealth.

The real estate market isn’t about winners and losers. It’s about timing, understanding, and knowing how to leverage opportunities amidst challenges. Whether you’re a buyer, seller, investor, or homeowner, now’s the time to make informed decisions. Stay curious and connected with our weekly insights to keep a finger on the pulse of real estate!

As always, I’m happy to chat one-on-one about your real estate goals and questions.

Have a great weekend,

Paul

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LISTING OF THE WEEK

Desired Neighbourhood, on a fantastic street close to schools, parks and many amenities

9 Wilkie Crescent, Guelph

$949,900

Detached 2 1/2 Storey
3 + 1 Bedrooms
3 Full Baths, 1 Half Bath
1,933 Above Grade Sqft
2 Parking Spaces

Beautiful Turnkey home with ample space in the heart of the south end of Guelph on one of the most desired streets in the area!
Top 10 Reasons you will love this home: 1) 4 bedrooms, 4 baths 2) Primary Bath has an ensuite and adorned with elegant California shutters 3) Loft on the third floor is a bonus space that has endless possibilities and is the showstopper of the home 4) The backyard! Backs onto a Wildlife Corridor that allows animals to travel from one park to another as well the green fills in and blocks the homes in the back, adding lots of privacy and serenity 5) The main living space - Warm, welcoming and designed for entertaining 6) The finished basement, complete with a full bathroom for additional Recreation space 7)The Guts of the home - Furnace and AC practically brand new in 2024 and top of the line (bonus both A/C and furnace have a 10 year warranty that is transferable), adding a lot of efficiency to the home, and an owned water softener as well! 8) The roof - Brand new in 2023 so another large cost you wont have to worry about! 9) Original owner, This home has been owned and loved from the start and we know all of its history. 10) The Neighborhood, One of the most desired neighborhoods, plenty of amenities near by, bus route and fantastic schools within walking distance right at the end of the street! This home is a must see!

Listing Courtesy of Keller Williams Home Group Realty

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