“Regional difficulties can affect attitudes significantly but when you get global superpowers going head to head on an issue like Ukraine’s sovereignty, the entire world’s money markets can get jumpy which is a much bigger problem for us all,” Ken Faminoff, a Calgary-based broker with Axiom Mortgage Solutions said in an official release.
The crisis in Ukraine has been ongoing since the end of February, following the Ukrainian revolution that saw the country’s government ousted and replaced the Yatsenyuk Government; a move that Russia viewed as a coup d’etat.
Some may write the turmoil off as a problem only affecting those a half a world away. Faminoff, however, is wary of the potential world-wide economic ramifications.
“Stock markets, institutional investors and lenders get nervous when conflicts occur; risk is elevated,” Faminoff said. “Banks are forced to consider their rates and the knock on effect can be higher repayments, decelerating monthly price increases for existing homes and a declining number of housing starts.”
And while Faminoff isn’t sure if and how the unfolding crisis will affect Canada’s economy, he believes it should entice would-be buyers to act sooner rather than later.
“The crisis in Ukraine may come to nothing; then again, it could lead to severe geo-political upheaval. If you’re considering a sale … you may be wise to accelerate your plans while the market is buoyant,” he said. “If you’re a buyer, you might want to move more quickly and secure the best available rates now.”
This may give brokers a good excuse to more closely follow world issues, as one broker warns about the potential effect the Ukraine crisis may have on the mortgage and housing industries.