Imagine paying $2,600 for a tiny one-bedroom apartment, needing a $200,000 salary just to qualify for a basic home, and still barely making ends meet.

This isn't a dystopian future - it's Vancouver right now.

In fact, Vancouver just ranked as the third most unaffordable city in the world, surpassing New York and London.

And it's about to get worse.

Last year, we watched thousands of British Columbians pack their bags and head to Alberta.

They're not just leaving - they're running.

Today, I'm going to show you why this exodus is happening and reveal the alternatives that could save you thousands every month.

Vancouver's Affordability Crisis

The numbers tell a shocking story.

A median-priced home in Vancouver now requires an income of over $200,000 – that's nearly triple the average Canadian household income.

That's also not a house, it's going to be a townhouse or an expensive condo.

For many, the dream of homeownership in the city has become completely unattainable.

But it’s not just hosing driving financial strain.

Everyday living costs are spiralling out of control.

Groceries in Vancouver cost 20% more than the national average, forcing families to stretch their budgets on even the most basic necessities.

Gas prices, consistently the highest in North America, add to the financial burden, especially for those commuting to work or managing family obligations.

Meanwhile, rising utility bills and unaffordable childcare further squeeze household budgets.

For renters, the situation is equally bleak – skyrocketing rents leave little room for saving.

The result?

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Will Trump's tariffs cause a mortgage renewal crisis?

As the housing market continues to face unprecedented challenges, the impact of tariffs on Canada is creating ripple effects throughout our economy. The combination of fluctuating mortgage rates and an ongoing recession has many homeowners concerned about their financial future. The housing crisis is deepening, particularly in major urban centers, while real estate news indicates significant market adjustments ahead. 🏘️ 👉 Let's navigate these changes together.

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👉 Learn more, call Jessi at 604 716 6474, email jessi@jessijohnson.ca or schedule a time to chat here: https://calendly.com/jessirealestate

Pick up my book here: https://amzn.to/3uX43SA

As someone deeply connected to the housing market, I want to shed light on the significant impact of recent U.S. tariffs on the Canadian housing landscape.

What makes this particularly noteworthy is that these aren't just abstract economic policies affecting large corporations—they have real, tangible consequences for individual homeowners and potential buyers.

Tariffs' Impact on Home Construction:

The most immediate and profound impact is on home construction.
Canada, being the largest softwood lumber supplier to the U.S., finds itself in a challenging position.

These tariffs mean increased prices for U.S. builders, which directly translate to challenges for Canadian lumber producers.

We could witness lumber companies facing production cuts, potential closures, and significant workforce reductions.

Once we apply counter-tariffs, the ripple effects extend to steel and aluminum industries, which are crucial for high-rise condos, appliances, and infrastructure.

Developers, unable to absorb these increased costs, will inevitably pass them directly to homebuyers, resulting in substantially higher home prices, especially for new constructions.

Housing Supply and Affordability Challenges:

The consequences stretch far beyond initial construction.

Cities like Toronto and Vancouver, already grappling with severe housing shortages, will experience even more pronounced challenges.

Higher material costs could delay or altogether cancel construction projects, further constraining housing supply.

This scarcity will likely drive up prices for existing home inventories, causing a significant spike in resale home demand as new builds become increasingly unaffordable.

Even homeowners looking to undertake modest renovations will feel the economic pressure, with materials like lumber, glass, and hardware becoming more expensive.

Ongoing labour shortages will compound these challenges, driving renovation costs even higher.

Regional Market Variations:

Regional variations will add complexity to this economic landscape.
Ontario might experience substantial shifts in its automotive sector, while Alberta's oil-dependent regions could face unique economic challenges.
Interestingly, not all market participants will suffer.

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👉 Learn more, call Jessi at 604 716 6474, email jessi@jessijohnson.ca or schedule a time to chat here: https://calendly.com/jessirealestate

Don’t forget to pick up a copy of my best-selling book on Amazon, Rockstar Real Estate Investing if you haven’t yet and we are here for your questions at any time.

Pick up my book here: https://amzn.to/3uX43SA

I am Jessi Johnson, a 19-year veteran in the industry and this podcast is dedicated to helping you understand the rollercoaster real estate market in Greater Vancouver.

I will post a link in the description to my recent podcast that picks apart my 2024 predicts so you can decide if I am out to lunch, or not

With changes to both the US and Canadian federal governments in play, it will be much harder to predict this year. 2025 will be a very volatile year and everything from mortgage rates to prices will be near impossible to predict.

That is my excuse and I am sticking to it

There are so many “what if’s”.

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A review of my predictions from 2024. Was I close? Or, was I out to lunch?

Welcome, I am Jessi Johnson, a 19-year veteran in the industry and this podcast is dedicated to helping you understand the rollercoaster real estate market in Greater Vancouver.

I am not sure about you but must of us in the real estate industry were expecting 2024 to be a much stronger year. For the vast majority of realtors, aside from the odd unicorn agent, it was a slow year, again.

Predicting 12-months of Greater Vancouver real estate is almost impossible. Even a few months out can be very hard, there are too many variables and unpredictable government intervention.

If the top economists are often wrong with predictions, that means my chances aren’t any better but I do enjoy the process of trying.

Lets review what I predicted, where it landed in 2024 and why.

Book time to speak with me here: https://calendly.com/jessirealestate

Recently in Canadian real estate, we’ve seen:
~ GDP numbers fall, shifting predictions for December rate cuts
~ Consumer insolvencies returning to pre-pandemic levels
~ Canadians saving at near-record rates

Fresh GDP numbers are in, and they’re weaker than expected. Canada’s economy grew just 1% year-over-year in Q3. GDP for September expanded by only 0.1%. On a per-capita basis? It actually fell by 0.4%. That’s the 7th straight quarter of decline.

The quarter matched expectations, but September’s growth disappointed. Economists had predicted 0.3% growth. Real estate, retail, and transportation saw gains. But construction, mining, and energy dragged the numbers down.

Looking ahead, early Q4 data looks weak. Swap traders now see a 33% chance—up from 25%. But I still believe a 0.25% cut is more likely. BMO’s Doug Porter agrees.

Now, for an interesting twist. People are saving at near record levels. Are people spending less because they can’t afford to? Or is something else at play? Perhaps they are preparing for something?

Consider this:
~ The household savings rate hit a 3-year high—7.1% in Q3.
~ Disposable income is growing nearly twice as fast as spending.
~ People are saving instead of spending.
~ Uncertainty is driving this shift.

I think, Canadians, familiar with recent tough times, are preparing for more rainy days ahead. But while saving is up, so is debt. Credit card balances hit a record $110 billion in September.

Consumer insolvencies? They’re up 8.8% year-over-year—and 18.4% in Ontario. We’re back to pre-pandemic levels. If this trend continues, we could see 2008-style insolvencies by 2025.

Monthly mortgage payments are showing some relief. The payment for a typical home dropped $10 in October. Not much, but, that’s down 20% from the peak. But let’s be real— Payments are still 90% higher than in 2021. The average monthly payment now stands at $2,975. Guess what it was in 2021? Just $1,600.

Mortgage rates play a key role in real estate sales. When rates hit record lows in 2021, sales volumes hit record highs. As rates climbed, sales fell. Mortgage rates have been on a stead decline for some time now:

Variable is now 4.49%.
Fixed is 4.4%

Markets are pricing in a 90% chance of a 0.25% cut on December 11. And rates could bottom at 3% by mid-2025.

Let’s talk about broader economic shifts. Don't forget about Trump’s proposed tariffs. He’s eyeing 25% tariffs, which could slash Canada’s GDP by 2-3%. This would push us into an all-out recession. And, would force the Bank of Canada to lower rates further.

Meanwhile, inflation "looks" well under control. The shelter component still makes up over half of CPI. But with falling rental rates and new units coming online, this influence should decline over time. Without shelter, inflation today would be just 0.9%.

Now, to Canadian businesses. We’re seeing record-high business closures. The small business delinquency rate hit 1.5%— up from 0.35% pre-pandemic.

Ontario is bearing the brunt: Business insolvencies up 26% year-over-year. 300% higher than 2021.

Covid loans are strangling already struggling businesses.

Can we recover? I certainly hope so

That's all for now.

Call me anytime with your skill-testing questions.

Book a time to have a confidential conversation with me here: https://calendly.com/jessirealestate

Please share this video with someone now.

What if you could shave off years of your mortgage amortization, save over $40,000 in interest, and even benefit from tax-saving strategies—all by giving up just one coffee a day?

It might sound too simple to be true, but let’s take a look at the numbers…they speak for themselves. Let’s take a $1,000,000 mortgage with 25 years left to pay and an interest rate of 5%. The monthly payment for this mortgage would be approximately $5,846. Now, imagine that your daily coffee habit costs $5 a day. By redirecting that $5 toward your mortgage, you could reduce your repayment term from 25 years to 23 years and 10 months.

Just over a year might not sound like a lot of time, but the interest savings are substantial, you’d save over $41,000 in interest over the life of your mortgage. But what if you doubled that $5/day to $10/day?

Let’s explore how much further you could go.

Let’s stick with the $1,000,000 mortgage example, with 25 years left to pay and an interest rate of 5%. The monthly payment is approximately $5,846. If you redirected $10/day—the equivalent of skipping two starbucks coffees or another small expense—you could reduce your mortgage term even further, down to 22 years and 8 months. The interest savings? A substantial $78,986 over the life of your mortgage.

Now here are 2 ways you can put these strategies into use.

1. Use Prepayment Privileges

Many lenders offer prepayment privileges that allow you to increase your regular mortgage payments.

You’ll have to take a look at your mortgage contract to see which pre-payment privileges but most mortgages allow you to increase your payment to a certain percentage.

Take advantage of these by notifying your lender of the desired payment increase, it’s as easy as that.

This option is convenient because it’s automatic. Once set up, you don’t have to think about it—it just works in the background, helping you pay off your mortgage faster.

2. Make Lump-Sum Payments

Another option is to make a lump sum payment. Let’s say you get a bonus at the end of the year or you save up money throughout the year and have additional savings. You could throw this sum at your mortgage, but just make sure to check your mortgage contract to determine the amount you’re allowed to put down as a lump sum.

Another advantage is that when you put extra money toward your mortgage, you’re effectively earning a guaranteed return by reducing the amount of interest you’ll pay. And this return is completely tax-free.

For example, if you invest that same $5/day elsewhere outside of a TFSA or RRSP , your returns could be subject to taxes. But with mortgage prepayments, every dollar goes directly toward reducing your debt, making it a smart financial strategy.

Are you ready to take control of your mortgage and explore how prepayment strategies can help you save thousands and pay off your home faster?

Every situation is unique, and I’m here to guide you through the options that work best for you.

Book a call with me today, and let’s create a personalized plan to maximize your mortgage savings.

Whether it’s leveraging prepayment privileges, setting up lump-sum payments, or finding creative ways to redirect daily savings, I’ll help you make it simple and effective.

That's all for now. Call me anytime with your skill-testing questions.

Book a time to have a confidential conversation with me here: https://calendly.com/jessirealestate/phone-meeting

Please share this video with someone now.

Grab a copy of my best-selling book, 'Rockstar Real Estate Investing' on Amazon or more in-depth knowledge: https://amzn.to/40cvjgy

Re-elected US president Trump plans to implement a massive 25% tariff on Canadian goods the day he comes back into power

Is this all bark and no bite? Or will he push us into a recession?

Let’s start with the basics: what are tariffs?

What are tariffs?

A tariff is essentially a tax placed on goods being imported into a country.

The idea is to make those imported goods more expensive, giving domestically produced goods a competitive edge.

Sounds simple, right?

But the ripple effects can be far-reaching, impacting businesses, consumers, and even entire economies.

Now, let’s talk about Trump’s plan.

He has proposed implementing a 25% tariff on all goods coming into the United States.

That’s a massive increase, and it could touch nearly every product Americans import from trading partners like Mexico and here in Canada.

To put it in perspective, let’s look at an example.

Imagine an American company importing a car that costs $30,000.

With a 25% tariff in place, that car would now cost $37,500

How Tariffs Impact Consumers?

When a government imposes tariffs, it’s important to understand who really ends up paying the price.

Technically, the tariffs are a tax on companies importing goods into the country.

For example, if a 25% tariff is placed on imported products, those businesses suddenly face significantly higher costs for those items.

Now, here’s the key question: what do companies do with those increased expenses?

They certainly don’t just absorb them.

Instead, they pass them along to us—the consumers.

That means the higher cost of importing goods gets baked into the final price of everything we buy, whether it’s food, cars, or household items.

In effect, these tariffs act as a hidden tax, making everyday essentials more expensive.

And this, my friends, is what we commonly refer to as inflation.

Printing money isn’t the only cause of inflation.

It’s not just businesses that feel the pinch—it’s all of us.

Why does this impact Canada?

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👉 Learn more, call Jessi at 604 716 6474, email jessi@jessijohnson.ca or schedule a time to chat here: https://calendly.com/jessirealestate/...

Don’t forget to pick up a copy of my best-selling book on Amazon, Rockstar Real Estate Investing if you haven’t yet and we are here for your questions at any time.

Pick up my book here: https://amzn.to/3uX43SA