Are we about to see housing prices go up in Canada, because thousands of Americans will flee their country in a Jerry McGuire-like storm out?
That’s not likely. But (shudders typing the words) President Trump’s politics and plan will spill into Canada’s real estate scene. If you’re planning on buying or selling a home in the next 4 years (unless he’s impeached), here are a few things to look for.
Trump’s Impact on Canada’s Interest Rates
Let’s start with Trump’s plan to purge the US of presumed illegal immigrants. This would have an impact the US’ economy almost immediately.
“Quite simply, it’s a plan that most business people and many leading economists say is very damaging both to the U.S. and to the Canadian economy,” wrote Moneysense’s Romana King.
“Remove that many workers from the labour pool and you create a labour shortage, which could prompt businesses to contract and slow down in order to fend-off the quickly rising cost of wages.”
But, King also speculates the U.S. Federal Reserve may abandon decisions to start raising interest rates to combat a business contraction, and the Bank of Canada would follow suit.
We will have to wait to see how his plan to deport will even play out, before we anticipate what it would mean.
Trump’s Impact on Housing Prices
We’ve all heard Lena Dunham, Chelsea Handler and Jon Stewart threaten to move to Canada if Trump won. So he won. Are we going to see a mass exodus from the US that drives down the supply of homes, and drives the prices up? Nah.
The truth of the matter is that a small percentage of people actually follow through on this threat. Yes, the Canadian Immigration Website crashed after the US election– which is hilarious. But, how many of those people will actually uproot their lives to move to Canada?
After Bush won a second term in 2004, we saw 34,000 more Americans emigrate to Canada over the next decade, compared to the previous decade. And those numbers were also boosted by the fear of terrorist attacks after 9-11. Will 11-9 result in the same?
Even if we see 34,000 Trump-dodgers, their overall impact on a national scale won’t be enough to disrupt the market. It’s not like 34,000 are going to just up’n leave tomorrow. They’re going to take their time, look for a new job, go through the complex immigration process, and then look for a home.
BUT, if You are an American Looking for a Home in Canada…
Burlington is where you want to be. We’ve gone into detail about this very issue before. Canada is the perfect place for Trump fleeing Americans to start a new life.
We’ve got a thriving community, with lots of opportunities. And Toronto and Canada’s largest job market is a quick train ride away. We’ve also got incredible schools, low crime, first class hospitals and everything else you need to forget about the big bad orange man.
So click here to see houses for sale in Burlington. Or click here to ask us anything at all.