Canada's Economy Is Brighter Than Ever: Phil Soper Weighs In
Written by: Remington Joseph
For years now, people have spelled out doom and gloom not only for the real estate market, but for the economy at large. For every spike in interest rates, or a shift in our currency’s exchange rate, there are people who cry out that the end is near, and that our market is geared to crash within the foreseeable future. We can confidently tell you that when it comes to the real estate market, things always balance out eventually. If the tides seem to have leaned far off in one direction, steps will always be taken so that a shift evens things out. If you don’t feel like taking our word for it though, things might sound better coming from one of the most influential men in all of Canadian real estate. Sitting down with Damon Conrad of Royal LePage Commercial, Royal LePage President Phil Soper gave us his thoughts on the market, reaffirming that Canada’s future is looking as bright as ever.
In a recent report of sales through TRREB's MLS System, we’ve seen a 38.8% sales drop compared to last year. Despite the lower sales number however, the number of new May listings was similar to last year's level and edged up on a month-over-month basis. With higher rates, it’s likely that potential buyers are waiting for a bottom in price which will likely continue through the summer. This may sound like a bad thing, but it’s actually helped to bring more balance in the market, providing buyers with more negotiating power than they had in previous months.
“'I'm happy that this correction appears to be a soft landing. In other words, we're not going to have a recession, or a collapse of housing markets to bring normality back into the market.” said Phil Soper when comparing this market correction to ones we’ve seen in previous decades.
From an outsider’s perspective, the troubles that the real estate market has faced in recent years, it’s easy to understand how someone could reach the misguided idea that Canada’s economy is falling. However, it’s important to keep in mind that the greatest issue the real estate market has actually been dealing with is a lack of inventory. When looking at Canada’s immagration stats, safety and security, and work opportunities, it’s easy to see that Canada remains as one of the top countries in the world to invest into.
“If I look at the Canadian commercial and residential real estate industry over the next decade or two, all indications are there's no place better on the planet to practice our trade. Canada is the fastest growing, advanced nation on earth in terms of population growth. We are one of the few places on earth that absolutely has immigration correct. We check all the boxes and have been ranked in academic studies as the number one best country on the planet.”
The world continues to change, and while our real estate market is influenced by those changes, it will always equalize itself eventually. If you have the opportunity, invest as soon as you can so that the next time the tide shifts, you’re ready to take advantage.