Hey there!
Last week, our team decided to let loose and celebrate Christmas in style. We rented a limo, took the afternoon off, and headed out to a winery in Colchester for some much-needed R&R.
The food and drinks were amazing, but the real kicker was the Trivia competition I got roped into.
Let me tell you, I’m not exactly a trivia master. In fact, I’m pretty sure my staff and agents are questioning my intelligence levels right about now!
I’m not sure exactly where I placed, but it was for sure in the bottom half… and that with me cheating, lol!
As I told them, if it were multiple choice, I would’ve crushed it… or at least that’s what I keep telling myself!
Alright, now let’s talk about something that’s been on my mind lately. Is it just me, or does it feel like the winds of change are starting to blow in Ottawa?
I’ve got a hunch that Justin Trudeau’s days as Prime Minister might be numbered. Call it a gut feeling, but I wouldn’t be surprised if we’re looking at a federal election sooner rather than later.
Now, I’m no political expert, but if I were a betting man, my money would be on the Conservatives taking the reins by the end of the summer. And if that happens, we could be looking at some big changes in the world of housing and mortgages.
Here’s what I think we might see under a new Conservative government:
- A crackdown on Mortgage Document Fraud, with the CRA stepping up their income confirmation game.
- The Housing Accelerator Fund? Yeah, that could be on the chopping block.
- CMHC programs might get a serious reality check, especially the ones that seem to be driving up prices.
- And those crazy Municipal Development Fees? The Conservatives might just put the brakes on those.
Again, this is just my two cents, but if you look at what the Conservative Party has been saying, it’s not hard to read between the lines. They’re all about making homes more affordable to buy, putting an end to out-of-control development fees, and taking a hard stance on crime, including mortgage fraud.
Moving on…
Let’s talk about interest rates…
The US Federal Reserve met on Wednesday and cut the Fed funds rate by 25 bps.
While that’s not exactly earth-shattering news, what really caught my eye was their forward guidance on future rate cuts.
Turns out, they’re planning on pumping the brakes on rate reductions next year. Not exactly the news we were hoping for, right?
Here’s the thing, our economy up here in the Great White North is still on shaky ground. We could really use a few more interest rate cuts to keep things chugging along.
But if our rate decisions start to diverge from the US Feds, with us cutting while they hold steady, it could spell trouble for the loonie. And guess what? The market is already telling us this.
As soon as the Fed made their announcement, the loonie weakened against the USD and Canadian bond yields shot up. It’s like the market is sending us a big, flashing warning sign.
So, what does this all mean? Well, buckle up, because we could be in for a wild ride. These are interesting times we’re living in, and it’s never been more important to stay informed and adaptable.
Before I sign off, I want to take a moment to wish you and your loved ones a very Merry Christmas and the happiest of holidays. In the midst of all this political and economic noise, it’s so important to pause and be grateful for what we have and where we live.
We’re incredibly fortunate to call this amazing country home, and I hope you’re able to spend some quality time with the people who matter most to you. As always, I’m here to help you navigate these choppy waters. If you’ve got questions, concerns, or just need someone to bounce ideas off of, give me a shout.
Until next time, keep your head on a swivel, your eyes on the prize, and your heart full of gratitude!
Merry Christmas,
Vince Castagna
P.S. As mentioned last week, we have a cool contest coming up for First Time Homebuyers. Stay tuned for details in January. Teaser: If you or somebody you know is a FTHB and looking for something that is affordable and with a backyard, then you will want to enter the contest.
