While the last couple days have seen dramatic swings in the stock market, Swift Current realtor Kelsey Adam says that a short, volatile stretch won't have much of a bearing on the real estate market.
"It's not going to affect anything on the real estate market in the short term. I mean, it's something that's got to be prolongued and has to be adjusted with real estate changes - that's something that's going to affect us more," Adam said, adding with a laugh that "if the temperature shot up 20 degrees, it would have a greater effect on the real estate market than the stock market plunging."
Adam did say Canada is more protected than the United States as American mortgage companies can package their mortgages as a product and sell them to different investment buyers. In Canada the laws are different, and someone with a mortgage at a certain financial institution won't wake up one day to see it owned by another institution. He said that was a contributing factor to the US being hit harder than Canada by the mortgage crisis a decade ago.
Stock market indices fell heavily on Monday before rebounding considerably yesterday. Adam also said that if there is a trend that continues and influences interest rates, larger cities such as Toronto and Vancouver would feel the effects more, as they have more properties in the millions-of-dollars range than somewhere like a Swift Current.