The TRUMP impact on the Canadian Housing Market

Regardless of your political views, I think we can all agree that the election of Donald Trump is going to bring “uncertainty” to the Canadian real estate market, both from a global perspective and with possible trade tariffs. The world as we know it is going to change.
As an aside, this should bring some focus inwards on what more Canada can do in terms of self-sufficiency, new trade partners, more defense spending, etc., and fix what is broken in a country rich with raw materials, fresh water, farmland, a skilled labour force, and should be the envy of other nations due to our ability to be self-sufficient. The fact that during covid, we had an inability to produce a homemade vaccine should have been an eye opener as to the type of infrastructure that needs to be built moving forward. I don’t understand, for example, why we export oil and then import the refined by-products that could be manufactured in this country. Enough of my rant.
In terms of possible trade tariffs, the impact would have multiple repercussions. We could expect less exports, which may negatively affect the job market and erode buyer confidence in purchasing a home. The cost of imported construction materials could rise, increasing the cost of housing or decreasing the willingness to entertain new construction and overall affect housing affordability. An economic slow down may facilitate a drop in interest rates which may improve the affordability for buyers or those with a mortgage renewing in 2025, however this could be offset by higher inflation which may facilitate higher interest rates as a means of controlling inflation.
How this impacts our local London, Ontario market remains to be seen. Home sales are expected to pick up in 2025 with the expectation of lower interest rates, but there is also an abundance of homes on the market, so there are options for those looking to purchase.
In these uncertain times, obtaining unbiased real estate/mortgage advice is critical. We are here to help you and welcome your comments.