With Donald Trump securing another term, many Canadians are curious about the potential effects on our economy and real estate market. As a realtor in Abbotsford, BC, I’d like to share insights on how this development might influence housing demand, interest rates, and the interest we often see from American buyers.
Interest Rates and Economic Implications
Trump has proposed reintroducing tariffs, and if Canada is affected, it could slow our economy. A dip in GDP might prompt the Bank of Canada to lower interest rates to stimulate growth. Lower rates mean cheaper borrowing, which could make buying a home more affordable here in the Fraser Valley.
Additionally, Canada’s recent decision to reduce immigration targets could further slow economic growth, adding pressure for rates to come down and stay low longer.
Are Americans Really Buying Canadian Real Estate?
Historically, Trump’s elections have led to increased interest from Americans browsing Canadian real estate. After his 2016 win, there was a notable spike in U.S.-based searches for Canadian properties. However, this interest seldom translated into significant purchasing activity. For instance, in 2016, foreign ownership of condominiums in Toronto and Vancouver remained low, at 2.3% and 2.2% respectively.
A major reason for this is likely BC’s foreign buyer tax, which many Americans don’t know about until they’re more seriously considering a purchase. When they realize there’s an extra cost, it tends to cool any serious investment plans.
What Does This Mean for Abbotsford and the Fraser Valley?
While we may see a brief uptick in American interest, especially with our close proximity to the states, I believe the real story will be how these economic shifts affect interest rates here at home. Prolonged low rates could keep the market accessible for Canadian buyers and support demand in the Fraser Valley. For anyone thinking of buying or selling in Abbotsford, it’s worth keeping an eye on these trends.
If you’d like to know more about how these changes could impact your real estate goals, feel free to reach out. I’m here to help you make informed decisions, no matter how the market shifts!