The real estate sector is currently facing a complex web of economic factors, from the recent Liberals’ win in Canada, to the ongoing uncertainty of tariffs and trade wars. In these dynamic times, we are as committed as ever before to providing our clients with the expertise and guidance you need to navigate these challenges and seize potential opportunities.

Current Economic Outlook: Monitoring Key Trends

The current economic climate underscores the importance of proactive strategies. Our team of experts are closely monitoring the U.S. economy, as any signs of instability there could significantly influence trade policies and, consequently, the Canadian market.  

Tariffs and Their Impacts: A Need for Vigilance

The fact of the matter is that the ongoing uncertainty around tariffs continues to be a key concern for the real estate industry. While the direct effects may be less acute for those not directly involved in exporting, the mid-to-long-term implications are substantial. They include:  

• Increased Costs: We anticipate that tariffs could lead to higher costs for construction materials, potentially adding 3-5% to the cost of building a home. 
• Project Timelines: The uncertainty around tariffs is disrupting project timelines, causing developers to question whether to proceed with ventures.
• Demand Fluctuations: Tariffs are reducing demand for housing and commercial space due to decreased consumer confidence and purchasing power. 

Adapting to Change

As we continue to monitor our economic environment, the current post-election results in Canada bring their own set of considerations for the real estate sector. Businesses must adapt to any policy shifts and their potential impacts on the market. 

Several key economic factors that we’re seeing influence the real estate market are:

• Population Growth: According to Statistics Canada, Alberta has just passed the 5 million mark! A growing population will continue to impact the demand for housing and commercial space. 
• Employment Trends: Employment trends play a vital role in consumer confidence and purchasing power, directly impacting the real estate market. 
• Interest Rates: Fluctuations in interest rates can create a push-and-pull effect, influencing both affordability and investment decisions. 
• Housing Starts (Supply and Demand): The balance between housing starts (supply) and demand is crucial for market stability.  

Regardless of what changes we’re facing across our province and Canada as a whole, ATB is committed to helping clients navigate the evolving economic landscape through expertise, guidance, and customized solutions. To learn more, please reach out to your ATB Relationship Manager or learn more here.