Call it the Trump un-bump. The previous euphoria in the stock market — the Trump bump — whereby investors salivated over the prospect of less regulation and taxation, which United States President Donald Trump referred to as a “new golden age,” has devolved into fear, uncertainty and less wealth for many Canadians, including here in Calgary. Read More
U.S. president’s mercurial approach to the economy has sideswiped Canadians’ wealth.
U.S. president’s mercurial approach to the economy has sideswiped Canadians’ wealth.
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Call it the Trump un-bump. The previous euphoria in the stock market — the Trump bump — whereby investors salivated over the prospect of less regulation and taxation, which United States President Donald Trump referred to as a “new golden age,” has devolved into fear, uncertainty and less wealth for many Canadians, including here in Calgary.
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“It’s a psychological impact,” says Kingsley Ma, area vice-president with Re/Max Canada in Vancouver, about the recent stock market and economic volatility that is a result of the Trump administration’s on-and-off tariff policies.
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Even though many buyers are not relying on their investment portfolios to purchase a home, many have a general sense that they are less wealthy and, certainly, less secure in this new normal of cliffhanger presidential decrees of tariffs today and none tomorrow.
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“All of this makes it hard to plan, including making a home purchase,” Ma says.
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The effect may be more pronounced in uber-expensive markets like Vancouver where a 20 per cent down payment for the average single-family detached home priced at more than $2 million might even exceed some individuals’ savings for retirement after decades of working.
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But Calgary’s buyers and sellers are likely also feeling the chill. Calgary Real Estate Board statistics from the end of the first quarter of the year (March 31) suggests uncertainty is seeping into the resale market.
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Year to date, sales were down 17 per cent for the total market. Apartment sales — often fueled by investors — were off 29 per cent, ending March 31.
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At the same time, total market inventory grew 21 per cent in the first three months of this year versus the same span last year. All housing segments — single-family detached homes, semi-detached, row and apartment — are now mostly balanced markets as opposed to the past few years where they deeply favoured sellers with demand far outstripping supply.
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While some buyers and sellers are more apprehensive, local realtor Nevin Jones with Re/Max Complete Realty notes the easing supply crunch has its silver lining.
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“My comment to them would be, ‘Thank goodness it’s not 2022 or 2023 anymore,’ ” he says.