Page 32 - Sports Energey News - Issue No 99, Cornwall, Mike Piquette

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32 Issue #99 March 2021 www.sportsenergynews.comom
the Spotlight on
Neighbourly Advice From Our Local Professionals
Neighbourly Advice Fr om Our Local Pr ofessionals
any investor with a 5-year time frame invest sooner S&P500 has reached new highs again (up 16%
Max Ming
rather than later. A great number of high-quality from pre-pandemic levels, and up 60%+ from the
T
ALENT
Investment Advisor companies are now at prices we will never see March 2020 bottom).
again in our lifetime. Once this selling pressure 1397 Brookdale Ave., TALENT
One Year Later The common thread here is unknowability; we
is relieved, we will likely get a decade’s worth of
On March 20th 2020, the S&P500 index (a main simply didn’t know when, where, or how these Cornwall
performance over a period of months. Forget about
stock market reference to judge the US economy) economic events would play out, or when the
the day-to-day gyrations of the market and do your
was down 34% from its previous high reached that inevitable new highs will be reached. Although
best to ignore the markets over the next few months
February. During that span, we witnessed one of we have no control over the uncertainty, we can
until this too passes.”
the most volatile stretches in stock market history. have perfect control over how we respond to it, or
Did we know when the market would bottom? ideally, how we don’t respond. At the end of the
The pandemic took a hold of our daily lives Absolutely not, no one does. Could it have day, it is never about what the markets do, it is Collectors Edition
and uncertainty was abound. Financial media fallen another 20% from the day we sent that always about what investors do (or don’t do).
dominated the headlines and fear had taken hold of the market. It has only been correspondence? Of course, it could.
a year, but in some sense, it feels a lifetime ago. So, one year later, the value of a good financial
What we do know is that every market decline advisor has never been more apparent. We work to
Here is what we wrote in an email to clients on March 20th, 2020.
in history was temporary. Not only that, but new make sure you have the proper asset mix for your
“Every time the markets fall, the reason (or crisis) is different, but the end results market highs were not uncommon, and in fact are goals, that you remain diversified, and have a plan
have always been the same. We are confident that the current market environment part of a very normal market cycle of declines, in place. An advisor helps investors stay patient,
is so tilted in favour of the long-term investor that we are recommending that recoveries, and new highs. As we write this, the have faith in a better future, and stay disciplined.
Grant
By Michael VanderMeer above the asking price. Is the appraiser wrong? These communities used to be more moderately
Real Estate Agent Probably not. The lack of product and the built- priced, but the values are being pushed up by
up demand for housing is pushing prices up to the out-of-town buyers who are used to much
MARKET VALUE - Market value in real estate the point that it is hard to keep up with market higher prices.
is described as what a willing buyer will pay value. 3. Built up demand over the last decade or Hebert
a willing seller with neither party being under What is driving the prices up? There are several so has been bringing in hundreds of thousands
undue pressure. In today’s fast-paced market, factors resulting in the recent surges in value, of immigrants who are now starting to hit the
we have to wonder if what homes are selling including but not limited to: marketplace and purchasing homes. This has
for are actually market value as the buyers 1. Interest rates have never been lower and have increased demand for housing causing a shortage
in today’s market are under a lot of pressure remained within a couple of basis points for the of available homes and driving the prices up.
when purchasing a home due to all the multiple offers. Depending on the last couple of years.
properties, there are cases where as many as 20 offers are put on a home and 2. COVID-19: We initially thought this would When will the market level out? This is anyone’s Nominated
buyers, under pressure to secure a home, are offering thousands of dollars harm the market, but it did the opposite - it guess. Major increases in interest rates could
over the asking price. strengthened it. With people discovering that slow it down a bit but until supply catches
I have had some cases where the property was professionally appraised they can work from home, they are leaving the up with demand, the market will continue to
before putting it on the market and these homes are still selling well bigger cities and moving to smaller communities. flourish. for Hobey Baker

mortgage payment relief, far more homeowners the steady downward decline in mortgage rates
By Brian Johnston would likely have defaulted on their payments, over the course of the year. Not only did mortgage
Mortgage Specialist leading to more severe personal and economic rates end the year lower than where they started Award
consequences. the year, they reached all-time lows, with rates
Looking Back: for most terms falling below 2.00%. And in
It’s safe to say that COVID-19 was the big news Bank of Canada’s COVID Response December, HSBC unveiled the lowest mortgage
maker for 2020. On the mortgage front, one of The Bank of Canada’s role in keeping the rate in Canadian history, a 5-year high-ratio Robert Morris
the biggest themes of the year ended up being country’s financial system liquid and maintaining insured variable rate of 0.99%.
the downward trend in interest rates. The resilient confidence throughout the year was very important
housing market not only held its ground in the face as well, evidenced by the lowering of the key Unstoppable Real Estate Market University
of a global pandemic, but it continued to produce lending rate from 1.75% in February to just 0.25% Despite a plunge in home sales and a dip in home
record-high house prices. Here’s an overview of by the end of March. Over the course of the year, prices in the early days of the pandemic, the real
some of the year’s top stories. the Bank bought up tens of billions of dollars in estate market quickly regained its footing, and by
government bonds. By the end of October, the
COVID-19 and Mortgage Deferrals Bank had acquired $156 billion worth of bonds the fall was once again posting fresh price highs.
The COVID-19 pandemic was indisputably the largest event of 2020, and or about 32% of the bond market, according to As of November, the Canadian Real Estate
one with far-reaching effects. One of the key reasons Canada’s housing and Governor Tiff Macklem. At the current pace, the Association reported an average sale price of
mortgage markets held up so well is thanks to the unprecedented response central bank is expected to control more than $603,000 (up 13.8% from 2020), or $481,000
from the country’s mortgage lenders, including the mortgage deferral options half of the country’s bond market by the end of (+19%) after removing the high-priced markets
offered by most of them. next year, according to estimates by CIBC’s, Ian of Toronto and Vancouver. With housing supply
At the height of the program, nearly 800,000 mortgages were in deferral. Pollick. ending the year at a record low, prices are expected
By December, the majority of those mortgage holders have successfully to continue with an upward momentum, albeit at a
transitioned back to making their regular payments. It’s clear that without Mortgage Rates Reach Historic Lows
One very important impact for homebuyers was more moderate pace, according to forecasts.