Tariffs & Real Estate: What Buyers and Sellers Need to Know Now Tariffs may seem like something that only affects international trade deals, but their impact is being felt right here at home—especially in Canada’s real estate market. Whether you're looking to buy, sell, invest, or renovate, understanding how these economic shifts affect your options is key. Here's what you need to know and why the outlook still holds opportunity.
Rising Construction Costs Recent U.S. tariffs—25% on Canadian exports and 10% on energy products—are increasing the cost of key building materials such as lumber, steel, and aluminum. As a result:
The cost of new home construction is rising.
Renovations and upgrades may become more expensive.
Affordability may decline in both urban and suburban markets, where demand is already strong.
However, for current homeowners, rising construction costs can mean increased property values, particularly for well-maintained homes.
Mortgage Rates and Lending Conditions Tariff-driven inflation may prompt the Bank of Canada to raise interest rates. At the same time, mortgage lenders are tightening their criteria for loan approvals. This means:
Mortgages could become more costly for new borrowers.
Fewer Canadians may qualify for financing under stricter rules.
Still, buyers who are prepared and financially stable may benefit from reduced competition in the market.
Supply Constraints and Market Dynamics Rising material and labor costs are leading developers to slow down or cancel some construction projects. This affects the market in several ways:
The overall supply of homes may become more limited.
Home prices could remain elevated, despite reduced buyer activity.
Resale properties may see increased interest, particularly among buyers looking to avoid high new-build costs.
What This Means for Buyers, Sellers, and Investors Buyers: First-time buyers may find it more challenging to enter the market, but those who are pre-approved and financially ready may find less bidding competition and more room to negotiate.
Sellers: Resale homes may become more appealing as new developments slow down. Proper pricing will be essential to attract buyers working within tighter budgets.
Investors: As more Canadians delay homeownership, demand for rental properties may increase. This could open the door for stable rental income and long-term value growth.
Moving Forward with Confidence Tariffs talks are changing the real estate landscape—but that doesn’t mean your goals are out of reach. With a knowledgeable advisor and a strategic approach, buyers and sellers can still make confident, informed decisions.
Yes, the market is adjusting. But opportunities remain for those willing to plan ahead, stay informed, and adapt to the new realities.
The market is shifting—but so are we: prepared, resilient, and focused on smart, forward-thinking solutions.
If you’re considering a move or have questions about how these changes may affect you, reach out. A smart strategy starts with a conversation.
Tariffs & Real Estate: What Buyers and Sellers Need to Know Now
Tariffs may seem like something that only affects international trade deals, but their impact is being felt right here at home—especially in Canada’s real estate market. Whether you're looking to buy, sell, invest, or renovate, understanding how these economic shifts affect your options is key. Here's what you need to know and why the outlook still holds opportunity.
Rising Construction Costs
Recent U.S. tariffs—25% on Canadian exports and 10% on energy products—are increasing the cost of key building materials such as lumber, steel, and aluminum. As a result:
The cost of new home construction is rising.
Renovations and upgrades may become more expensive.
Affordability may decline in both urban and suburban markets, where demand is already strong.
However, for current homeowners, rising construction costs can mean increased property values, particularly for well-maintained homes.
Mortgage Rates and Lending Conditions
Tariff-driven inflation may prompt the Bank of Canada to raise interest rates. At the same time, mortgage lenders are tightening their criteria for loan approvals. This means:
Mortgages could become more costly for new borrowers.
Fewer Canadians may qualify for financing under stricter rules.
Still, buyers who are prepared and financially stable may benefit from reduced competition in the market.
Supply Constraints and Market Dynamics
Rising material and labor costs are leading developers to slow down or cancel some construction projects. This affects the market in several ways:
The overall supply of homes may become more limited.
Home prices could remain elevated, despite reduced buyer activity.
Resale properties may see increased interest, particularly among buyers looking to avoid high new-build costs.
What This Means for Buyers, Sellers, and Investors
Buyers:
First-time buyers may find it more challenging to enter the market, but those who are pre-approved and financially ready may find less bidding competition and more room to negotiate.
Sellers:
Resale homes may become more appealing as new developments slow down. Proper pricing will be essential to attract buyers working within tighter budgets.
Investors:
As more Canadians delay homeownership, demand for rental properties may increase. This could open the door for stable rental income and long-term value growth.
Moving Forward with Confidence
Tariffs talks are changing the real estate landscape—but that doesn’t mean your goals are out of reach. With a knowledgeable advisor and a strategic approach, buyers and sellers can still make confident, informed decisions.
Yes, the market is adjusting. But opportunities remain for those willing to plan ahead, stay informed, and adapt to the new realities.
The market is shifting—but so are we: prepared, resilient, and focused on smart, forward-thinking solutions.
If you’re considering a move or have questions about how these changes may affect you, reach out. A smart strategy starts with a conversation.