It seems as though the entire world is talking about American politics these days. Whatever your opinion is, there is an inevitability that the rapid shift in American policies are currently having (and will continue to have) a remarkable impact on the Canadian economy, and ultimately, the Canadian real estate market. Here are the top 5 predictions that real estate experts have about the influence of Donald Trump on the Canadian real estate market.
- Americans are looking north. According to BNN, in the aftermath of Trump winning the election, “American-based sessions on Royal LePage’s website spiked 329 per cent the day after the election, and 210 per cent in the week after Trump’s victory – compared to the same periods a year earlier”.[1] While the actual purchases remain unknown, there is a certain increase in American interest in Canadian real estate that may increase the demand for Canadian homes.
- Businesses are looking north. We may see an increase in commercial real estate purchases as many of Trumps new economic policies are pushing tech business owners out of America.
- Americans will buy a cottage first before a home base. According to Phil Soper, President of Royal LePage, we are most likely to see changes begin with the “toe in the water” approach, where American residents purchase a second or vacation home before decide to move permanently to Canada.
- Interest rates may remain low. Analysts are predicting that if Trump commits to his campaign promise to deport 11 million labourers, the resulting shift in the labour force could have drastic effects on the business in both Canada and the United States, triggering more contract workers, access to cheap credit and “prolonged ultra-low rate environment in both Canada and the U.S.” [2]
- Canadian mortgage rates may begin to cool. Ontario Finance Minister Charles Sousa believes that “something has to be done” in order to help mitigate the ever increasing home prices in Canada. Strategists are predicting that an increase in American demand for Canadian housing might be the ticket to cooling down our hottest markets, especially in Toronto and Vancouver.
While the jury is still out as to exactly what will happen over the next four years, some of the biggest names in Canadian real estate, such as Phil Soper, are confident that the impact of Trump’s election will hit the Canadian economy and the Canadian real estate market hard. If you are considering buying or selling a property, contact our team of professional Realtors® for a free, no obligation market evaluation of your current home. Our sales representatives are happy to help answer any questions you might have about the real estate market in Ottawa.
[1] http://www.bnn.ca/surge-of-u-s-interest-in-canadian-real-estate-amid-trump-s-victory-royal-lepage-1.653899
[2] http://www.moneysense.ca/spend/real-estate/u-s-presidential-election-impact-of-trump-or-clinton-win-on-canadas-real-estate/
