TGIF: REALTORsaurus? Not us! Staying adaptable in today's ever-changing marketplace.
REALTORsaurus eh? Not us - at least not intentionally! Yesterday we spent a terrifying day studying "Trends & Issues in Real Estate” reviewing past experience as life's lessons and reflecting on the future external forces, dynamics and exponential progress of technology that will affect real estate.
"Affordability" is today's buzz word - did you know that real estate was equally unaffordable in the 1980s when interest rates rose to 21% and home prices were a fraction of today's? Payments were similar to now with wages considerably lower. When interest rates rise, our mortgage payments will double or triple, bringing a whole new meaning to unaffordable. Takeaway from this is 'be prepared'. In an era where lifestyle is more important than paying down our mortgage, doing everything we can to pay down our mortgage while interest rates are low will prevent foreclosures (1980s epidemic) & future hardship.
Did you know that many Vancouverites have moved to Vancouver Island and still commute for work? The $100 price of a flight from Nanaimo to Vancouver is more than offset by the significantly lower price of real estate. Our harbour is the busiest in North America for floatplanes. And as we tax foreign buyers with vacant homes, should we tax the many Vancouverites who move to the Okanagan, spend winters in Palm Springs, leaving their home vacant half the year? Interesting question when the real estate disrupters come from different places, both near & far, with the same result - rising prices & vacant homes.
And, of course we all know that the provincial budget balanced as a result of the property transfer tax!
Did you know that there are 50 billion tweets a day along with 31 billion Google searches every minute? And that speech is only the 2nd form of communication for a millennial? Texting is first. What this means is that the greatest exposure of real estate internationally is on Facebook - a community as large as China or India.
In our location, we are especially vulnerable to global events - the threat of war, declining or increasing currency elsewhere and politics, both here and abroad. With worldwide communication, we know immediately when there is a crisis or significant world event, so that our real estate market, as well as other markets, can change in an instant without warning.
There are just so many factors that can affect the real estate market, so it is good to think ahead to possibilities and how we handle them. This course had huge content, so we shall be looking at big ideas to be ready for future digitization and adaptability to serve you into a hyper changing future.
Sunshades are more useful than umbrellas today - and as always, we have you covered.
Sheila and Michelle.