The Trump Effect (On Toronto Real Estate)

13 December 2016
Remax-Condos-Plus

With the election of Donald Trump in the U.S. people are asking me about the Trump effect on Toronto Real Estate. First, don't expect any Americans to move here, that was just celebrity talk. Do expect more people to move here from other parts of the world. That's all thanks to the Donald, who has made the U.S. less hospitable to immigrants.

The other impact from this election is a jump in interest rates. Bond rates, which impact Mortgage rates are 1% higher today than the market low in the summer. However, they are still below rates in 2014. The primary reason for the rise is investors are worried about inflation and massive Government deficits from Trump's plan for massive infrastructure spending.

My take? Not all the spending will take place, and there is still too much cheap money in the world. Rates will level off around these levels. In the end, Trump is a minor impact to our market.