Question:
With the potential for increased Tariffs, what direction is the market going?
Answer:
The 2008 – 2009 stock market crash reduced the stock market in half. However, over the same period, house prices only went down 15%. That was due in part to the shortage of supply.
We must build more in order to reduce prices. We can put more money potential in the hands of Buyers by reducing interest rates, but within a few months that money just gets shifted over to Sellers with increased prices.
So, we need a real plan by a government which has the power, and conviction to make the right decisions. House prices will likely be on hold until the election. Then, the next task is to do battle with the US. We need other trading partners. That will take a few years before we see the returns.
Note: This was published on 18 April 2025, so with all the upcoming changes, it should be good for a few hours, maybe even a few days!
Brian Madigan LL.B., Broker