To read part 1, click here.
One of the biggest areas felt by Canadian’s will be in the vacation property market. Americans are the largest foreign buyers of Canadian vacation property. In large part due to the affordability of the recreational properties based on the strength of the U.S. dollar. A decrease in the currency (due to uncertainty) could mean a widespread withdrawal from the market and would have a lasting effect. Prior to the recession in 2008/09, Nova Scotia and New Brunswick were popular destinations for Americans. Post financial collapse cottages and lake front properties saw a decrease in price as much as 60%. That market is still recovering almost a decade later.
Trade also plays an important part, much more so to Canada and will have the greatest effect on the economy. With Trump’s promise to “tear up NAFTA” and introducing tariffs on Chinese imported goods, this could hinder our slow growing economy. Trade is much more important to Canada than it is to the United States. They can afford to become detached with 10 times the population than Canada however it would cause significant damage to our economy. Lay-offs in areas that are heavy in export and trade would be inevitable and stall our economic growth as a whole.
Only time will tell what the true effects of a Trump government will have on Canada. We will soon begin to see what issues were a ploy to attract votes during the campaign and what issues he will actually push to become legislated.
Saskatoon real estate agent
Century 21 Fusion