Trade War & Stocks Vs. Real Estate

This episode explores the impact of the Canada-U.S. trade war on Canada's housing market. Against the backdrop of declining construction costs in some areas, the hosts analyze several articles highlighting the market's vulnerability to trade tensions and tariffs. More significantly, they discuss the potential for a broader economic downturn affecting consumer spending and home prices, referencing predictions of a 5% nationwide price drop. The discussion pivots to the contrasting perspectives of a "flight to quality" in real estate versus a negative wealth effect leading to asset liquidations. For instance, a Redfin survey reveals that one in five homebuyers plan to sell stocks to fund down payments, illustrating the interconnectedness of the stock and housing markets. The hosts also examine the impact on various real estate sectors, including industrial and commercial properties, noting potential opportunities and challenges. In conclusion, the episode underscores the complex interplay of economic factors influencing Canada's housing market and suggests a period of uncertainty and potential volatility.