What Do the New Tariffs Mean for Your Real Estate Plans?

By now, you've probably seen posts about the new tariffs—what’s affected, the U.S. products to swap for Canadian ones—but how does this impact your real estate journey? Whether you're looking to buy, sell, or renovate, these trade changes could influence the market in ways you might not expect.

Tariffs and Construction Costs: What’s Changing?

While Canada is a major producer of lumber and steel, we still rely on imports for certain types of materials. Tariffs on imported steel, lumber, and appliances can drive up costs in construction and home improvement projects. This means:

• For buyers: New home prices may rise, as builders face higher costs for materials. If you're considering a pre-construction property, it’s important to watch how these costs might influence final pricing.

• For homeowners and renovators: If you’re planning to upgrade your home before selling, the cost of renovations could be affected. Materials like flooring, cabinetry, and structural steel beams may see price increases, making renovations more expensive.

• For sellers: Home values may shift as buyers factor in potential renovation costs. Well-maintained homes that require fewer upgrades could become more attractive in the current market.
  

Appliances and Home Finishes May Cost More

Beyond construction materials, tariffs can also affect everyday home essentials. Many household appliances, plumbing fixtures, and hardware components rely on imported parts. If you're in the process of furnishing a new home or replacing major appliances before listing your property, you might see price hikes or delays in availability.

Will Tariffs Impact Housing Demand?

Higher costs for building and renovations could lead to reduced new home construction, potentially limiting housing supply in some areas. For sellers, this could mean less competition on the market. For buyers, this could mean fewer choices and rising home prices in certain segments. However, interest rates and local market conditions still play a major role in shaping real estate trends.

How to Stay Ahead in a Changing Market

If you’re thinking of buying or selling, staying informed about these economic shifts is key. Here are a few tips: ✅ Buyers: Lock in purchases sooner rather than later to avoid potential price increases. Consider homes that need minimal work to reduce renovation costs. ✅ Sellers: Highlight move-in-ready features and recent upgrades to attract buyers who want to avoid high renovation expenses. ✅ Renovators: Compare local and imported materials to find cost-effective alternatives. Working with professionals who understand market shifts can help you budget wisely.

Tariffs are just one piece of the real estate puzzle, but they can have a ripple effect on pricing, supply, and demand. If you're unsure how this impacts your next move, let's chat! I'm here to help you navigate the market and make smart real estate decisions.

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