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Impact of President Trump on Canadian Housing

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Impact of President Trump on Canadian Housing

By Elliot Funt

Safe Place for International Investors

There is no doubt that for at least the short-term the Vancouver (and Canadian) housing market will be seen as a safe place for international investors in comparison to the United States housing. For sellers, this comes at an excellent time as it off-puts the impacts of the 15% foreign buyers tax in Vancouver. 

China

In particular, Trump's has said that he plans to have a firm stance against China. This strong position will undoubtedly mean Canada is, in comparison, a safe-haven for Chinese money. In Trump's trade policies, points #5, #6, and #7 aim at restricting China's trade influence in America.

United States

Calls are already coming into real estate agents in Vancouver from Canadian citizens currently living in the US and from some US citizens. The running joke made by Democrats wanting to move to Canada may now have a level of truth that, in combination with other foreign money, is enough to increase Canadian housing prices. 

Mexico

The number of refugee claims from Mexico is expected to increase drastically according to a CBC article published Nov 10th. As of December 1st, Canada is dropping the tourist visa requirement for Mexican visitors. Trudeau announced this change in visa requirements on June 28th, well before the election upset. It appears that any restriction on Mexican tourist visas closely associates with lower refugee claims from Mexico.

Sources:

https://www.donaldjtrump.com/policies/trade
http://www.cbc.ca/news/politics/canada-mexico-visa-requirement-trump-1.3845957

Disclaimer: 

The information provided here is meant to be a recap of current news and does not constitute advice about the market one way or another. It is advised you contact your REALTOR® (such as me) and other sources before making any major financial decision

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Where to Buy If You’re Looking For A Studio, 1-Bed, or 2-Bed Condo?

Where to Buy If You’re Looking For A Studio, 1-Bed, or 2-Bed Condo?

By Elliot Funt

My post today specifically analyzes sales and sales prices for studios, 1-bedroom, and 2-bedroom condos in Vancouver and it’s surrounding areas. There has been much speculation about how this portion of the market will react due to the 15% foreign-buyers-tax and increased restrictions on the mortgage market. The market for a studio, 1-bdrm, and 2-bdrm condos is also an important market as many first-time buyers will be looking in this market.

For the analysis of the charts, I have included all price ranges. If I were to exclude the upper price range for these condos, I’d overlook properties that were once within a range and have increased as to be out of any price range in question. West Vancouver is excluded due to a lack of data in this segment of the market.

Sales Down, Yet Prices Up In Many Areas

Sales are down in all areas since earlier this year. While sales are down in all areas, prices continue to rise in North Vancouver, Burnaby, and New Westminster. All of these markets appear to be relatively safe choices with localized pockets of economic growth. Burnaby and New Westminster have seen steady price increases stabilized in part due to the opening of new Evergreen Skytrain line opening up in that area. North Vancouver continues to grow and be stable in this market, with heavy levels of ongoing development in North Vancouver. North Vancouver also has the added stability in the studio, 1-bdrm, and the 2-bdrm market as many of the buyers in this market are North Shore raised and specifically want to purchase on the North Shore.

Vancouver Sales Prices Down

Vancouver itself has seen a slight decline in sales prices since earlier this year, though nothing too substantial. Vancouver itself will inevitably go up over the long-run, though clearly many buyers are waiting to see what happens in the short-term market. The tradeoff for many buyers in the condo segment of the market will come down to how much rent they will pay during the time of this slight market instability. I am looking for a new place in the West End and wouldn’t hesitate on the right place at the right price. I feel that there are many good deals to be had while other buyers are waiting on their decision to see what the market does.

Richmond Instability

Richmond has taken a particularly steep decline in prices in the last three months, though is still up overall from a year ago. I would be particularly cautious of this portion of the market for the next few months and certainly, seek expert advice if you’re on the hunt. As with the Vancouver market, there are good deals to be hand, though the risk/reward is amplified in the Richmond market. Due to the massive foreign investment in the Richmond area, it is no surprise that Richmond has been hit quite hard by the foreign-buyers-tax.

Sources:

http://statscentre.rebgv.org/ 

Disclaimer: 

The information provided here is meant to be a recap of current news and does not constitute advice about the market one way or another. It is advised you contact your REALTOR® (such as me) and other sources before making any major financial decision.