Could Canadian Housing Market Already Be Feeling Impact of US Election?
It’s Election Day and the Canadian real estate market may look more attractive to some Americans, depending on whether they’re Team Trump or Team Biden and who holds the title of Commander in Chief. Could some of our friends south of the border consider moving to the Great White North? And what could that mean for the Canadian real estate market?
US web searches upward trend for Canadian real estate
Before the election, REMAX.ca was already seeing a year-over-year increase in US website traffic – despite the decline caused by COVID-19. The increase in searches around the Canadian real estate market and Canadian real estate This also seems to be a bigger and longer-term Google trend, as this graph shows:
Also check out this heat map, which lists the US regions showing the greatest interest in the Canadian real estate market:
Is it possible that this surge could be motivated by US politics? It’s hard to say conclusively. While there was no clear sudden “spike” in related searches in October, there may still be something behind the longer-term trendline. And of course we’ll see what happens after the elections and when the Canadian-American border reopens.
Immigration and the Canadian Housing Market
Immigration (or lack of it) has been a factor in the demand for Canadian real estate in 2020, but any pandemic-induced decline could prove temporary. Before COVID-19 closed the world’s borders, Canada welcomed around 300,000 new Canadians each year who had significant demand for homes. We know that travel and immigration restrictions have reduced these numbers dramatically. However, the federal government announced last week that it intends to increase the number of newcomers to 401,000 permanent residents in 2021, 411,000 in 2022, and 421,000 in 2023. 2021-2023 Immigration Levels Plan, which sets out “Responsible Immigration Goals” are listed to help Canada recover from the devastating effects of COVID-19.
Perhaps this could also be an escape plan for our American friends who are considering taking a step because of the election results or for other reasons.
If Canada does not restore the influx of newcomers, could it undermine the strength of Canadian real estate?
“It could be, but I’m not sure this will have a long-term impact in Canada,” said Christopher Alexander, executive vice president of RE / MAX of Ontario-Atlantic Canada, in a recent interview with BNN. “We continue to attract people. Yes, travel has been restricted and it has been more difficult to move around freely around the world, but as the United States makes its immigration regulations increasingly strict, Canada becomes even more attractive. During 2020 [immigration] We assume these numbers will rise again once the journey resumes and people can move around freely. “