How U.S. Tariffs Could Impact Canadian Real Estate—And What It Means for You
I've had a lot of conversations lately about the new U.S. tariffs and what they could mean for the housing market here in Canada. It’s a big shift, and while there’s plenty of speculation, I want to break it down the way we see it—without getting into the political side of things.
Short-Term: A Bit of Uncertainty
Any time there’s a major change, global disruption, or significant event, people naturally become more cautious, waiting to see how things play out. Some buyers and sellers may hesitate, and on the construction side, builders could start feeling the impact of rising material costs, especially for things like steel and lumber. If that happens, we could see an uptick in new home prices and, potentially, a further slowdown in new development projects, which could create future inventory shortages.
Mid-Term: Interest Rates & Market Adjustments
The Bank of Canada recently made a decision to drop the key interest rate by 25 basis points, which could help ease some of the pressure on buyers and fuel the housing market further. While many properties we've recently sold have gone into multiple offers—some with as many as ten offers—this rate reduction may encourage even more competition. If the tariffs cause economic slowdowns, this rate reduction may encourage more affordable mortgages. However, if inflation picks up due to rising costs, rates could stay higher for a longer period. Either way, there will be shifts, and the key is knowing how to navigate them.
Long-Term: The Market Always Finds Its Balance
If there’s one thing I’ve learned in real estate, it’s that the market has a way of adjusting. Toronto and Durham continue to see strong demand, and while there could be short-term fluctuations, well-located properties have always held their value over time. Unless the goal is to sell a property in the short term, these kinds of economic shifts shouldn’t be a major concern. In the long run, they tend to be small blips in a much bigger real estate journey.
What This Means for You
At the end of the day, real estate decisions should be based on your personal goals, not just market headlines. While the market has been relatively soft over the last two years, it has also created huge opportunities for first-time buyers and those looking to upgrade. Personally, I sold a home I thought I’d live in forever to upgrade to a home 1,200 square feet larger—for less than $40,000 more.
For sellers, plenty of homes are still selling at market value or above—some even in multiple offers. As I always preach, if a home is prepped right and we set clear expectations, you’ll get results. If it’s not, it will sit. We sell everything because we take the time to do things the right way, and that makes all the difference. Timing and strategy matter, and knowing how to navigate these shifts can put you in the best position to succeed.
If you have questions about how this could affect your plans, let’s talk. I’m happy to help you make sense of the market and find the right move for you.
