Unease Leads to Falling Property Sales

One of Vancouver's top condo markets has slashed staff count

Unease is in the air, and the next few months look extremely challenging for people on edge about their employment and financial situation.

It was disconcerting to read the news that one of the biggest condo marketers in Vancouver cut 25 percent of its staff.

Rennie laid off 31 of its office staff, claiming geopolitics, economic factors and artificial intelligence for the drastic move.

"It was a necessary step in response to a changing market, but no less painful," the company said on LinkedIn.

The company's post added Rennie is reducing its head office staff count to 92 from 123 [with a total of 400 employees], and pleaded for anyone looking for people to consider its "thoughtful, talented contributors who helped shape our culture and our business."

Real estate sales have slowed in Vancouver, dropping 24 percent in April year on year, and it was reported the other day the valuations of pre-construction condos have fallen -- which means those who put down payments a year or two ago cannot get mortgages at the previous higher valuation, but the current one.

That will result in more people being unable to afford their condos and will have to sell at fire sale prices.

Then there's the Trump factor, with the American president's indiscriminate tariffs casting a chill on thoughts of making any kind of big ticket purchases from cars to property.

And there's also AI, which makes having humans doing the same work redundant and cost-saving. 

Which is perhaps why Rennie says in the post: "The shifts we are seeing in real estate aren't temporary, they are structural. And yesterday is never coming back."

Yikes.