Michelle Kam on What a Shifting US Economic Climate Means for Toronto Real Estate This Year

Toronto Ontario, Canada – October 08, 2026 – Toronto real estate has never moved on its own. Interest rates, trade policy, and investor confidence in the United States all find their way into decisions made by buyers and sellers here, sometimes within weeks.

Michelle Kam, a Toronto broker who has worked through several market cycles, says this year is a clear example. Changes coming out of the new US administration, from trade posture to interest rate expectations, are already shaping how cautious or confident local buyers feel.

“People ask me if what happens in Washington really changes anything in a Toronto condo deal,” Kam says. “It does. Borrowing costs, investor sentiment, even the exchange rate all move the number a buyer is comfortable paying.”

What Changes for Buyers

Kam says the buyers she talks to this year are asking more questions before they commit. They want to know how a rate move might affect their monthly payment two or three years out, not just today.

That shift in mindset is not fear. It is caution, and Kam says it is a reasonable response to a less predictable economic backdrop.

“A buyer who asks about variable rate exposure or how a trade dispute might touch construction costs is not being difficult,” she says. “They are doing what a smart buyer does in any uncertain year.”

She tells buyers to pay attention to how a property would perform under a less favorable rate environment, not just the one in front of them right now. A unit that works at today’s rate needs to still work if that rate moves.

What Changes for Sellers

Sellers face a different question. Kam says pricing a home or condo well in a year like this means reading buyer hesitation correctly, not ignoring it.

“A seller who prices for last year’s market in this year’s conditions will sit longer than they expect,” Kam says. “The homes moving quickly right now are priced for where buyers actually are, not where sellers wish they were.”

She says sellers who understand this are adjusting expectations earlier in the process, rather than after weeks with no offers. That usually means working closely with an agent who is tracking rate news and buyer sentiment week to week, not just at listing time.

Where the Opportunity Still Sits

Kam says periods of economic uncertainty are not only a story about caution. They also create openings for buyers who are prepared.

Less competition at certain price points, more negotiating room on closing terms, and sellers more willing to talk about conditions are all things she has seen show up when the broader economy gets less predictable.

“The buyers who do well in a year like this are the ones who stay ready,” Kam says. “They have their financing sorted out, they know their number, and they move when the right property shows up instead of waiting for certainty that may not come.”

She says this applies across the properties she works with, from condos and townhomes to the detached homes and commercial space she has been spending more time on.

A Local Read on a Wider Story

Kam’s view is that Toronto buyers and sellers do not need to track every detail coming out of US economic policy. They need a sense of how it lands here, in financing costs, in buyer confidence, and in how quickly a property moves.

That is the read she gives her own clients this year: watch the borrowing cost, watch buyer hesitation, and make decisions based on what the property does for you, not on predicting what Washington does next.

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About Michelle Kam

Michelle Kam is a real estate broker based in Toronto, Ontario, with Re/Max City Accord Realty Inc. She built her career in the city’s condo, loft, and pre-construction market before opening her own brokerage, and now works across condos, homes, and commercial sales.

Contact:

Info@michellekamtoronto.com

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Website: michellekamtoronto.com

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