Moving forward post COVID-19

June 2021

What does our world look like as we return to normalcy post COVID-19? It has been a little over 15 months since COVID-19 became a common term in our daily vocabulary, and it has affected all aspects of our lives, from how we work and travel to how we buy our groceries. As retailers and public spaces reopen their doors across Canada, we return to everyday life with a new perspective on our world, as things are just a little different now.

The hospitality industry is struggling to find staff, so expect some delays in getting a reservation back at some of your favourite restaurants. Many hospitality staff have moved on to different jobs to earn a living during COVID lockdowns.

The effects of COVID lockdowns have hit the travel industry particularly hard, so you'll find deep promotions to entice visitors with discounted domestic airfares in Canada, among other recent offerings.

The workplace has also been transformed, with some employers permanently allowing staff to work remotely or with modified arrangements. According to a recent survey, a mere 19% of Canadians want to return to the "physical" workplace, and 60% prefer to go work at the office only part-time.

This new work reality has had spillover effects into the real estate markets of smaller communities outside larger urban cities, where many have had a large amount of new "out-of-town" buyers who are said to be "disrupting" traditional growth and affordability.

Loosening of lockdown restrictions also means that Canadians have been flocking to retail shops using some of their historically high savings to purchase any and everything. This means that inflation has been a big concern for the Bank of Canada as the economy begins to recover. The CPI (consumer price index) rose to 3.6% in May (target is 2%), with all metrics seeing increases, including:

Homeowners' replacement index at 11.3% - Durable goods 4.4% increase § Passenger vehicles up 5% - Rental vehicles up 22% (as companies look at rebuilding their fleets) - Gas prices up 44% (over 12 months)

Many experts see this increase in inflation as short-term as we come out of lockdown and current supply-chain bottlenecks improve but certainly something to keep an eye out for the second half of 2021. Despite all the uncertainty and ongoing changes, the one sure thing is that everyone seems ready to get back to normal and finally enjoy a beautiful summer.

With an expected increase in domestic and international travel as restrictions on quarantine ease and more people getting vaccinated, some people continue to stay local again this year.

Most people don't realize that you can obtain a mortgage on a recreational, or even "secondary" home, with as little as 5% down on the first $500,000 and then 10% down, up to $999,999. With record rates below 2% in some cases, this is a desirable option for clients who want to participate in the real estate market while owning an asset they can enjoy.

Perhaps instead of booking a flight to the Caribbean or Europe next for your family, a small down payment on a vacation property could be much more appealing. A vacation or family property might be a great way to continue building your net worth while still enjoying the beautiful countryside we have in our backyards.

Take advantage of a complimentary review to better understand your options with Vine Group and let us know what you plan on doing post lockdown.

IN THE NEWS

Not just the pandemic: Why housing prices are skyrocketing, and what could come next

Let's start with the part you already know:real estate has gone completely bonkers. In many parts of Canada, this spring has brought unprecedented levels of appreciation for those who already own homes, along with unprecedented levels of unaffordability for those who hope to one day join that class.

Click here to read more. Source: CTV News, June 2021

'It's not going to change': The long and short of Canada's job vacancy problem

“I’m constantly turning down projects,” said Brian Newsam, who co-owns the company. “There’s not a day that I don’t say no to a job.” He just doesn’t have enough people to do the work. His staff of 40 could easily grow to 80, and he could take on more projects, if only he had qualified applicants...

Click here to read more. Source: MSN, June 2021

Survey shows only 20 per cent of workers want to return to office full-time post COVID-19

Canadians are in no rush to head back to the office even as COVID-19 cases and deaths continue to decline across the country, a new survey suggests. A recent poll by Leger and the Association for Canadian Studies has found that 82 per cent of Canadian respondents who have worked from home during the pandemic have found the experience to be very or somewhat positive, while just 20 per cent want to return to the office every day.

Click here to read more. Source: CTV News, May 2021

Canadians desperate for new holiday adventures this summer will soon have some fresh options

Those opening new attractions this summer are banking on vaccinations restoring faith in travel.

Click here to read more. Source: CBC, April 2021

Be well & stay healthy!

Preet Singh, Mortgage Associate

780.994.7454 preet@vinegroup.ca