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Silver Lining to Economic Downturn 
Hey little buddy, how are you doing? No, no, the world hasn’t ended yet, and I didn’t think you’d be one of those people who would be whipped into a frenzy about the state of theworld’s economy.Well yes, the markets are still way down from where they were last year and Barack Obamahasn’t had time to fix all of George W. Bush’s mistakes just yet. True true, the CanadianParliament is still on hiatus during these tough economic times, but regardless, that doesn’t mean you should still be hiding under the kitchen table. Here, take my hand … I gotcha. Ipromise things will get better, you just wait and see.What’s that? You want to watch the news. Um, are you sure that’s a good idea, seeing asyou’ve been crouched in that dark spot for five weeks now? Yeah, I think giving your eyestime to adjust to the light would be wise, so we’ll just leave the tube off for now. I think there’s a Sports Illustrated on the coffee table over there. That should help you ease back into news of the world.But wait, oh no, don’t touch that newspaper …And another once-brave soul is crippled with fear by the doomsdayers in the nationalmedia.It’s true, the Canadian economy is in tough right now. There’s no sense sugar-coating it, orignoring it - it just is what it is. Corporations are looking out for the best interests of theirshareholders and taking jobs overseas where they pay their new staff a pittance. ThenNorth America’s Big 3 automakers received a multi-billion dollar bailout from both the U.S.and Canadian governments to get them through the next few months, although it’s difficult to see how GM, Ford and Chrysler will suddenly begin making smaller, more fuel efficient vehicles in the next six months, saving the companies’ bacon, as well as the jobs of hundredsof thousands in Ontario alone.
 
Undoubtedly, times are tough. Jobs - especially in Ontario - are at a premium. People aresaving their money because they could be next in the unemployment line.Our governments don’t seem to have a plan, nor have we even had the chance to hear fromour federal politicians since early-December when the Prime Minister asked for aproroguement of Parliament in order to buy his government time in the face of beingovertaken by a coalition government.In other words, things are a complete mess. We’re told that every time we turn on atelevision, open a newspaper or listen to the radio.But us Canadians, for the most part, can always find the silver lining. What would that be?Well, we’re not the United States of America for one. We aren’t in full-blown recession,despite some saying we’re on the brink. We don’t have a skyrocketing unemployment rate(although it continues to climb in some parts of the country). We don’t have familiesforeclosing their homes at an alarming rate, destroying the one industry many thought wasinfallible - big banks. In fact, our banks are doing OK, although they’re being a bit morecareful when distributing loans these days, which means they’ve learned from the mistakesof their American counterparts, and there’s nothing wrong with that.In fact, Canada’s real estate market is holding up relatively well, considering the doom andgloom that we’ve been force-fed over the past six months, with some declines in house salesand starts in most parts of the country. People could have freaked out, listed their home fornext to nothing just to get out from under what remained on their mortgage and moved intoan apartment with cheap rent. But Canadians - for the most part, because there’s always anexception - haven’t flipped out or bought into the hype of “the next Great Depression” andother buzz words designed to make us tune in at 11 for more.What has probably been created in the current economic slow-down is a return to ‘normal’market prices in most Canadian centres. In Alberta and B.C., prices skyrocketed during theoil boom after the past five years. Now, oil prices have dropped to about $50 per barrel, andgas is about half the price at the pump as it was at its peak of this past summer. So as the oiland gas industry comes back down to earth, the real estate market should do the same.The same goes in metropolitan areas like the Greater Toronto Area that have seenunprecedented growth and house price hikes in recent years. Now, prices are slowlycreeping down to more acceptable levels, as people are in a ‘wait and see’ mode beforebuying during the current economic climate. What that does is create a more competitivesales environment and puts the buyer into the driver’s seat.And here’s where the savvy - and gainfully and securely employed - have a chance tocapitalize on a flooded market. People need to move homes, condos, and apartment buildings, in order to move onto the next stage of their lives. If people aren’t lining up topurchase their property, a potential buyer could be in a position to do some seriousnegotiating. So undercut. Offer them something they almost have to refuse, and then wait for the counter-offer. If they drop their price, definitely budge from your original offer, but keep that price low - lower than you even feel comfortable offering - to see just how farthey’ll bend before telling you to take a hike.
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