All this talk about layoffs and job losses, sagging economies, and falling oil prices is enough to drive us all batty. It’s weighing on me. It’s weighing on all of us.

 

Whether or not you currently see the glass as half empty or half full, be grateful there’s still water in the glass. That’s the approach I’m taking as we cautiously shuffle our way into 2016. Pull up the shade and take a peek out the window, and luckily, it’s not Armageddon just yet.

Otherwise, you might as well just shut your mouth and live with the consequences. No, “I told you so’s,” or, “We had no say,” comments if you don’t fulfill your civic duty on Election Day. Simple as that.

Be that as it may, all this talk about layoffs and job losses, sagging economies, and falling oil prices is enough to drive us all batty. It’s weighing on me. It’s weighing on all of us. And, while part of me feels we’re in for the long haul with these tougher times, I also want people to use this as a time to regroup, reflect, and pull up their bootstraps.

It’s an opportunity to be grateful for all of the things we still do have in place. We have the infrastructure and economic sectors, which do still feed into this great province. We also have the realization things could be much, much worse.

Don’t kid yourself. Things are going to take some time to turn around here. The housing market in Calgary alone experienced a 28% drop in sales, year over year, between December of this year and December of 2014. That’s a big jump backwards. Inventory is up, sales are down, and average home prices are falling, especially in the condo market and a lot of the multi-million sector. We’re also currently more than 20% off the 10 year average for home sale prices. So, that should also tell you to prepare to put up with this unwanted situation. It’s the same way you need to prepare for your unwanted in-laws (or outlaws as the case may be) extended, uncomfortable stay.

Realize it’s a great time to buy a property, and it will be for months to come, but only if you can afford it. Oil markets, real estate markets, economic sectors, heck even seasonal weather patterns, all are cyclical. They have always risen and fallen, and they always will.

The residential and commercial rental markets have also noticeably softened as a result of the current provincial economy. For the first time in years, residential and commercial vacancy rates have loosened so much many tenants formerly priced out of the market can now finally afford to jump in. That also means affordable housing options, for those on the lower incomes, have also opened up.

The new year will bring about more layoffs, more job loss, and more cuts. Even despite our country’s major banks recently announcing more multi-billion dollar profits (I’m still shaking my head about this one), none of that will translate directly into improved financial conditions for our economy. At least not in the short term. Other job markets should benefit from the continued sag in the energy sector, but will it be enough to offset? Not likely soon enough.

Glancing into the near future, it would seem our current federal and provincial governments seem preoccupied with more environmental, infrastructure, and social program spending. Where all of this money and cash will come from, especially without a) more revenue from oil profits and b) increasing taxes at all levels, is beyond my all-knowing powers of prediction. But, it’s going to have to come from somewhere.

If you think both the provincial NDPs and the federal Reds are going to actually follow through on all of their far-fetched campaign promises, you might want to also add a few more straps to your proverbial seatbelt. Over the next four years, things are going to get rougher, tougher, and more mind-boggling before you can really break out the confetti and champagne for party time.

Continued talk of rising interest rates, coupled with little to no confidence oil prices will even rise back to $60/$70 bbl anytime soon, means this cooling off period (some might more aptly refer to it as a kick in the a** period) is going to last awhile. So, put your gloves and parka on, and at least you’ll already be more prepared to withstand the elements.

Time to take stock of spending, borrowing, bills, and more. Realize it’s a great time to buy a property, and it will be for months to come, but only if you can afford it. Oil markets, real estate markets, economic sectors, heck even seasonal weather patterns, are all cyclical. They have always risen and fallen, and they always will. How long this current dip will last is anyone’s guess. But, let’s be completely honest here as well. Alberta home prices couldn’t have continued to climb much higher without many of these same Albertans crying out in disapproval the same way they are now.

Things will get better. I assure you. This is why you’re often told to, “buy and hold.” Ya, Yeah, I get it. That’s about as measuredly annoying as your mother telling you to, “Put on your long underwear and mitts, because it’s chilly outside, and you’ll catch a cold!” Especially when all your holdings are suddenly less profitable than they once were. But, deep down, secretly, you know it’s all aimed at helping you weather the storm. And, if you can hold on for this ride, especially, you should be even stronger coming out the other end. Whenever that might be.