The threat of tariffs in the ongoing dispute between the US and Canada is sure to impact Etobicoke real estate. In fact, it already has with many buyers choosing to sit on the sidelines and not buy anything until there is more stability in the marketplace. Here’s the truth about US-Canada tariffs, their impact on Toronto real estate, and what to expect in the coming year.

Real Estate & Tariffs: An Economic Shift

Real estate is an industry extremely sensitive to economic shifts, including those that are being affected by current and proposed tariffs.

If material costs and borrowing conditions change, this affects market dynamics. It could mean an increase in price for new homes and condos, project delays or cancellations in investments, and a reduction or slowdown in housing supply.

Tariffs will likely increase the price to renovate as well, discouraging homeowners from renovating which means slower home appreciation and a reduced appeal to sell an older home where there are updates required.

Thinking it could be time to buy a new home? Check out these blogs for helpful buying advice.

Full Scope Of US-Canada Tariffs On Real Estate

  • Inflation: Tariffs are likely to increase the cost of goods in Canada and increase inflation. This could make borrowing more expensive and is likely to slow down mortgage approval.
  • Stricter Lending: Economic uncertainty from tariffs is likely to lead to more cautious lending practices.
  • High Demand For Rentals: As buying a home becomes more expensive, this means more renters. Rental prices will be driven up and there will be a higher demand for rental properties overall.
  • Potential Government Intervention: There is a possibility that the government may intervene if tariffs impact housing affordability and housing supply.

What A Toronto Real Estate Investor’s Approach Should Be

Whether you buy, hold, or sell, every real estate investor has a move to make. While there are advantages to waiting to buy or sell, a lot of good opportunities may present in the coming months when sellers need to sell.

The risks may be more prominent at times, depending on your Toronto real estate investment strategy, but what is sure is that smart investors know when to take risks. Don’t immediately discount a period of instability as being a time to not buy or sell. Consider what risks are worth taking and how you might come out on the other side of these tariffs.

Tariffs On Buyers, Sellers, And Smart Investors

If You’re A Buyer

As buyers delay their purchases, this means reduced competition in the short term and downward pressure applied to home prices as sellers seek to attract hesitant buyers.

Despite the risks of inflation and tariffs, Etobicoke real estate still benefits from declining interest rates. A buyer may want to consider locking in their mortgage rate in the near future, especially when tariffs could make housing less affordable on a temporary basis.

If You’re A Seller

A seller may have to adjust their pricing strategy, offering more incentives to buyers and a willingness to accept low offers to close a deal more quickly.

A seller has to run some calculations on what makes the most economic sense when they’re selling Toronto real estate. Especially if holding costs are increasing or you have recently lost your job, selling today could be more lucrative than selling tomorrow.

Looking to sell your home smoothly and for top dollar? Get more selling advice with these posts next:

If You’re A Smart Investor

A smart investor sees the opportunity. As some buyers step back, savvy investors step in.

In the next year, as US-Canada tariffs advance, a real estate investor in Etobicoke can expect better deals on properties, strong chances to buy before the market stabilizes and prices rebound, and the ability to negotiate favourable terms with motivated sellers.

Are you looking to buy or sell Etobicoke real estate this year? Call us at (416) 319-6893 or email info@adrianandrea.com for more information on how to navigate the imposing tariffs and identify your best real estate opportunity to jump on!