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While Oshawa’s real estate market will be robust in the long run, it should expect a short-term downturn after news broke Sunday evening that General Motors is slashing as many as 2,500 jobs.
“The impact will be short lived,” said Dan Plowman, owner of Dan Plowman Team Realty Inc. “People can only freeze their buying and selling for so long—and people do freeze when they hear bad news. I remember in the ‘90s, there would be shutdowns and layoffs at the plant, and people, of course, froze. It’s terrible that the collective bargaining agreement is not being lived up to by General Motors, but I also believe our town today is not as reliant on General Motors for its work infrastructure. Oshawa is very commutable to the City of Toronto now.”
Realistically, auto manufacturing isn’t one of Oshawa’s top-three industries, so while the long-term impact of the GM plant shutting down will be negligible on the housing market, Plowman notes that the consumer psyche is fragile, and that’s enough for a temporal chill.
“Perception is reality and bad news obviously has an impact,” he said. “I believe that when people freeze—in other words, when they’re scared or uncertain—they tend to be more conservative, whether with retail shopping or purchasing cars, or even buying secondary properties, but it only last a little while. I say 60 to 90 days.”
Added Michael Dominguez, a sales representative with REMAX Jazz in Oshawa, and owner of company name is Doors to Wealth Group:
“There have been changes over the last 10 to 15 years where plants have shut down and where we’ve seen drops of 2,000-3,000 employees in one shot.The reality is that the Oshawa market has changed so much over the past generation or so that the automotive sector doesn’t represent one of the top three industries in our area. We’re fortunate we’ve been able to diversify.”
Dominguez has already fielded a few phone calls from worried investor clients, and not only does he tell them that there isn’t anything to worry about, there’s actually an opportunity to capitalize.
“I know of two deals that were conditional where people pulled out as a result of this, and I believe that for the next three to six months there’s going to be a lot of investors sitting on sidelines waiting to see what’s going to happen in marketplace,” said Dominguez. “My advice is to take advantage of this opportunity because many novice investors will sit and watch what happens.”
by Neil Sharma
28 Nov 2018