How Global Conflicts Impact Real Estate Markets: Insights from 1979 to Today

The real estate market, often seen as a stable investment, is significantly influenced by various economic and geopolitical events. Since 1979, several major conflicts and crises have impacted home values and investment patterns. Let’s explore how these events have shaped the real estate landscape over the decades and what it means for homeowners and investors today.

The Ripple Effects of War and Conflict

1. 1980s-1990s: Oil Shocks and Gulf Wars The 1980s and early 1990s were marked by oil price shocks due to geopolitical instability in the Middle East, including the Iran-Iraq War and the Gulf War. These events led to inflation spikes, higher interest rates, and increased uncertainty, which slowed down real estate activity. The rising cost of borrowing made home purchases less affordable, cooling demand in many markets.

2. 2001: The Impact of 9/11 and Subsequent Conflicts The September 11 attacks triggered a significant shift in global economic policies, resulting in heightened security measures and military interventions in Afghanistan and Iraq. The immediate aftermath saw reduced consumer confidence, with investors pulling back from high-risk markets. However, low interest rates introduced to stimulate the economy eventually led to a housing boom in the mid-2000s.

3. 2008 Global Financial Crisis: A Turning Point Though not a traditional conflict, the 2008 financial crisis was a major disruptor. Originating from a collapse in the U.S. housing market, it triggered a global recession. Home values plummeted, and many markets took years to recover. The crisis highlighted the interconnectedness of global financial systems and the vulnerability of real estate markets to economic shocks​

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4. 2020-Present: COVID-19 Pandemic and Russia-Ukraine War The COVID-19 pandemic was an unprecedented event that disrupted economies worldwide. Lockdowns and shifts in work-from-home policies altered real estate demand, with a surge in suburban home purchases as people sought more space. Just as markets were stabilizing, the Russia-Ukraine conflict in 2022 added new pressures. Rising inflation, spiking energy costs, and disrupted supply chains increased construction costs, pushing home prices even higher and reducing affordability in many regions​

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How Do Conflicts Affect Real Estate Investments?

Global conflicts tend to increase economic uncertainty, prompting shifts in investment strategies. During these periods, central banks often adjust interest rates to control inflation or stimulate growth. These changes directly affect mortgage rates and home affordability:

• Rising interest rates typically slow down home buying as borrowing costs increase, reducing demand.
• Supply chain disruptions can delay construction projects, reducing housing supply and driving up prices.
• Inflationary pressures may lead investors to seek safe-haven assets, like real estate, that traditionally hedge against inflation.

What Can Homeowners and Investors Expect?

Given the historical impact of conflicts on the market, investors should be prepared for potential volatility. Here are some strategies to consider:

• Diversification: Spread your investments across different asset classes to mitigate risk.
• Stay Informed: Keep an eye on global events and economic policies that may affect interest rates and housing markets.
• Long-Term Perspective: Despite short-term fluctuations, real estate remains a strong long-term investment. Historical data suggests it takes approximately 9.75 years for home values to double, even accounting for periods of crisis.

Final Thoughts

The real estate market's response to global conflicts highlights its sensitivity to economic shifts. By understanding these trends and preparing for market changes, investors and homeowners can navigate uncertainties with confidence. Whether you're buying, selling, or investing, staying informed about global events is key to making smart real estate decisions.

If you’re looking to discuss how current market trends might affect your real estate plans, feel free to reach out. Let’s navigate this market together!

How the City of Maple Ridge can best develop downtown properties including Cliff Avenue is the subject of a new survey.

The survey is available online, and residents can offer their opinions until Nov. 15 at noon.

A group of properties on Cliff, Selkirk and 119th Avenues are being looked at, for long-term planning, as the city reviews land use designations in its Town Centre area, between 221st and 222nd Streets.

The city notes that these properties are currently designated as single-family residential. The land lies in a transitional area that borders both the Town Centre and Lougheed Transit Corridor area plans. The Town Centre plan guides growth in the downtown area, while the Lougheed Transit Corridor plan sets out development along Lougheed Highway and Dewdney Trunk Road to the west of the Town Centre. The latter plan calls for higher density housing, with more focus on rapid transit service.

The city held an open house on Oct. 30 at the Maple Ridge Public Library to get public input.

The public was told the city sees development potential for Selkirk and 199th Avenues being multi-family residential buildings – townhouses and apartments. Building heights could reach 25 storeys, or higher where appropriate.

Future land use on Cliff Avenue being considered is low-rise apartments and commercial space.

Neil Corbett
Nov 5, 2023 8:00 PM

https://www.mapleridgenews.com/local-news/maple-ridge-changing-land-use-on-key-downtown-properties-6832025

Christmas Market 2023: Golden Ears United Church, 22165 Dewdney Trunk Rd., Nov. 18, 10 a.m. to 2 p.m. Baking, preserves, kraft korner, cookie bar, silent auction, vendors, and artisans. Info: goldenearsunited.ca.

Craft and Bake Sale: Haney Presbyterian Church, 11858 216th St., Nov. 18, 10 a.m. to 2 p.m. Decorations, sewing and knitting items for sale, soaps, baking, and more.

Christmas Crafts and More: Maple Ridge Alliance Church, 20399 Dewdney Trunk Rd., Nov. 18, 9:30 a.m. to 3 p.m. Free admission, more than 50 vendors.

Pathfinders/Rangers Winter Market: Haney Presbyterian Church, 11858 216th St., Nov. 25, 1 to 5 p.m. Girl guides fundraiser, more than 50 vendors, draw prizes, book sales, concession, food trucks, and gift wrapping by donation.

Christmas Market: CEED Centre, 11739 223rd St., Nov. 25-26, 10 a.m. to 3 p.m. Local artists, gift basket draw, apple cider, sewn items for sale.

Thomas Haney Craft Fair: Thomas Haney Secondary, 23000 116th Ave., Nov. 25-26, 9 a.m. to 5 p.m. More than 100 vendors, childcare by donation, and food trucks. Admission is $5, but kids 6 and younger are free.

Albion Holiday Craft Fair: Albion Community Centre, 23165 104th Ave., Nov. 26, 11 a.m. to 4 p.m. Charity raffle, Santa, food trucks, more than 116 vendors, and door prizes.

Christmas in Pitt Meadows: Spirit Square, 12027 Harris Rd., Dec. 1, 4 to 8 p.m. Decorations, vendors, Santa and Mrs. Claus pictures, hayride, food trucks, concession, road hockey, carolers, kid’s zone, live entertainment, and tree lighting. Info: pittmeadows.ca.

Winter Fest: Memorial Peace Park, 11930 224th St., Dec. 2, 4 to 8 p.m. Santa parade, light displays, food trucks, Christmas market, and kids games.

Teen Gingerbread House Building: Maple Ridge Public Library, 22470 Dewdney Trunk Rd., Dec. 5, 6 to 7:30 p.m. Ages 12 to 18, free gingerbread house building. Info: Maple Ridge Public Library Facebook page.

Seniors Christmas Party: Maple Ridge Public Library, 22470 Dewdney Trunk Rd., Dec. 6, 1 to 2:30 p.m. Silvertones Choir, light refreshments, holiday music. Registration required. Info: Maple Ridge Public Library Facebook page.

Holiday Ornament Making: Maple Ridge Museum, 22520 116th Ave., Dec. 9, 11 a.m. to noon and 1 to 2 p.m. Ages 5 and older, ornament building workshops, hot chocolate. Admission is $5 per child, registration required. Info: mapleridgemuseum.org/holiday-ornament-making.

CP Holiday Train: Maple Ridge and Pitt Meadows, various Westcoast Express stations, Dec. 17, varying times. Performances by Tyler Shaw and Kiesza. Info: cpkcr.com/en/community/HolidayTrain.

Pitt Meadows Winter Fair: Pitt Meadows Secondary, 19438 116B Ave., Dec. 18, 4:30 to 8 p.m. Cake walk, live music, auction, concession, kids games, and vendors.

Winter Wonderland Skate: Pitt Meadows Arena, 11435 Bonson Rd., Dec. 22-23, varying times. All-ages skating, decorations, selfie station, skate and helmet rentals. Admission is $2 per person. Info: pittmeadows.ca.

Boxing Day Skate: Plant Ice, 23588 105th Ave., Dec. 26, 1:30 to 3:30 p.m. All-ages skating, face painting, hot chocolate and snacks, gift card draw. Admission by donation, with all proceeds going to Maple Ridge Kid Sport and BC Cancer Society. Info: Enhance Sport & Wellness Facebook page.

Have an upcoming holiday market or event?

Send the information to brandon.tucker@mapleridgenews.com.

https://www.mapleridgenews.com/local-news/get-into-the-holiday-season-with-these-maple-ridge-and-pitt-meadows-events-7109831

Langley and Maple Ridge will be connected by one of three fast bus lines announced by TransLink and local mayors on Thursday, Nov. 16.

The new local Bus Rapid Transit (BRT) corridor will run from Langley City, likely up 200th Street, across the Golden Ears Bridge, and then east as far as Haney.

Exact routes have not been determined, TransLink’s announcement said.

The other routes include a King George Boulevard line running from Surrey Centre south to White Rock, and a corridor from Metrotown in Burnaby all the way to the North Shore.

The three corridors were selected based on ridership potential, feasibility of building the new infrastructure, and support from local governments.

Several mayors and councils in the areas, including in Langley and Maple Ridge, have been enthusiastic about the possibility of BRT service, with Maple Ridge actively lobbying just last month to be one of the first routes chosen to be built.

“We are thrilled about being announced as one of the first municipalities that is being awarded with Bus Rapid Transit (BRT) as planned in TransLink’s Access for Everyone plan,” Maple Ridge Mayor Dan Ruimy said, in a statement released by TransLink. “This means that the Langley – Haney Place, Maple Ridge line will be prioritized. From day one we have been working hard at both the staff and political levels to demonstrate that Maple Ridge is ready for more transit and will collaborate with our partners to get shovels in the ground.”

Eric Woodward, Mayor, Township of Langley

“As the largest municipality within Metro Vancouver without Rapid Transit service, the Township of Langley is long overdue for a significant investment in transit infrastructure from TransLink,” Mayor Eric Woodward of Langley Township said. “The Langley – Haney Place Bus Rapid Transit line is one of the best corridors to get going on right away, with so much growth, available right-of-way, and strong municipal support from us and Maple Ridge. TransLink has always had willing a partner for Bus Rapid Transit in the Township of Langley.”

TransLink announced last year that it was planning up to double regional bus service over the course of a decade, and that BRT systems would be a major part of that project.

A BRT line uses a dedicated lane for buses only, down major transit corridors. Bus riders are expected to pre-pay before boarding what “rail-like stations” that will have shelters.

TransLink said last year that it planned to serve its BRT routes with zero-emission buses.

READ MORE: Maple Ridge council unanimously votes to move forward with BRT plans

READ MORE: Langley Township wants TransLink to make fast buses on 200th Street a priority

Once in motion, the buses will have their own lanes and will have priority at traffic signals.

Planning work for the King George Boulevard and Langley to Haney corridors will be advanced, TransLink announced.

The Metrotown to Park Royal corridor will be immediately extended and upgraded, the announcement said.

These are the first three of nine proposed BRT corridors.

Exact alignments of the routes and total costs have not yet been determined. TransLink will also be looking for money from senior levels of government to pay for the projects.

Last year, TransLink estimated BRT would cost around $15 million per kilometre to build, compared to the approximately $400 million per kilometre for SkyTrain extensions that are also about to start construction.

Richmond once had a BRT-style line down Number Three Road, but the service was discontinued after the SkyTrain extension was built there.

The Author: Matthew Claxton

As of the very start of 2023, home sales across British Columbia will be subject to a three-day, cooling-off period as a measure to protect homebuyers.