The Election Is Over, Now What?

This episode explores the Canadian economy's post-election landscape and its implications for the real estate market. Against the backdrop of a closely contested election with surprisingly similar platforms from the leading parties, the hosts discuss the lingering uncertainties surrounding US trade tensions and the potential for a recession. More significantly, the discussion delves into analyses from RBC Economics and Deloitte, highlighting concerns about economic slowdown, pressure on low-to-middle-income Canadians, and Canada's low structural growth. For instance, RBC emphasizes the need for fiscal policy over monetary policy to address these challenges, while Deloitte predicts a recession but also identifies potential upsides in reshoring and trade rebalancing. The hosts then analyze five consensus issues from both election platforms related to housing, including tax reductions, investor incentives, first-time buyer assistance, increased construction, and reduced red tape. Finally, the conversation touches upon the growing sentiment of alienation in Western Canada, particularly Alberta, and its potential implications for the country's unity. What this means for real estate investors is a need for defensive strategies in certain sectors and opportunistic approaches in others, coupled with close attention to government policy responses.