This morning, I attended a call with Shaun Cathcart, Senior Economist and Director of Housing Data and Market Analysis at CREA, who provided an insightful update and analysis on the current housing market. Mr. Cathcart addressed potential market impacts stemming from the newly implemented tariffs, in a thorough Q&A session.
We are currently navigating a period of heightened uncertainty, influenced by a complex interplay of economic factors. Potential scenarios include recessionary periods with varying levels of inflationary pressure, with the most concerning being a recession coupled with high inflation. In the coming months we will have a better understanding of which scenario will take hold and thus how it will impact the real estate market in the short term. But as of now, the February stats which will be released by CREA within a week show a deceleration in the Canadian real estate market.
Despite this deceleration, it is important to maintain perspective and recognize the resilience of the Canadian real estate market. Historically, the sector has successfully adapted to numerous challenges, including:
1997: Introduction of the Harmonized Sales Tax (HST)
2003: Severe Acute Respiratory Syndrome (SARS) outbreak
2007-2008: Global Financial Crisis
2008: Implementation of the Land Transfer Tax
2011: Competition Bureau scrutiny
2020: COVID-19 pandemic
2023: Introduction of the Foreign Buyer Ban
2024: Implementation of the Luxury Land Transfer Tax
2025: Extension of the Foreign Buyer Ban
2025: Introduction of tariffs
Despite these events, the Canadian real estate market has demonstrated a consistent upward trajectory. While growth rates may fluctuate, the overall trend remains positive.
In this dynamic environment, a prudent approach involves maintaining vigilance, practicing informed decision-making, and remaining receptive to emerging opportunities.
Please do not hesitate to contact me with any inquiries. Now more than ever it is imperative that you seek the guidance of a professional and have representation so you can protect yourself and make an informed decision.
www.sharaturner.com
