Welcome to the latest episode of Make Money Count! The Canadian housing market is facing big shifts, with tariffs, interest rates, and economic uncertainty all playing a role. Will falling rates bring relief, or will rising inventory and hesitant buyers keep the market sluggish? In this episode, Marcus breaks down the key trends shaping affordability, investment opportunities, and the broader economy.

Episode Highlights

Tariffs and Their Impact on Housing Costs

Tariffs on lumber, steel, and aluminum are raising construction costs, and developers pass these costs to buyers, making homeownership even tougher. How will first-time buyers cope?

Rates Are Coming Down – But What Does It Mean?

Interest rates in Canada are poised to fall faster and harder than expected, with major banks like BMO and RBC adjusting their forecasts. The Bank of Canada’s response to economic uncertainty and trade tensions could push borrowing costs lower in the coming months. But will lower rates bring relief to the housing market?

Toronto and Canadian Real Estate

Despite lower rates, real estate activity remains sluggish. The sales-to-new-listings ratio sits at 33%, firmly a buyer’s market. Prices have dipped slightly but not enough to boost demand, while active listings are up 76% year-over-year, reflecting growing inventory and buyer hesitation.

Canadian Dollar Takes a Hit – What’s Next for Real Estate?

The loonie is struggling, and while the auto industry gets a short-term break, economic uncertainty looms. A weaker dollar usually attracts foreign investors, but with rising inventory and caution in the market, will they jump in or stay on the sidelines? 

Trudeau’s Play – Holding Off on a Short-Term Trade Deal

The government is holding back on a quick agreement while economists push for EI reforms to cushion economic shocks. If implemented, these changes could impact consumer spending and household stability—but will they happen? 

What Will Canada Do?

Canada will likely see more rate cuts as the Bank of Canada responds to economic headwinds. Potential EI reforms could offer support amid trade pressures. With rising supply, hesitant buyers, and economic uncertainty, a real estate rebound remains unlikely.

Stay tuned as we track these developments and what they mean for you. If you have questions about navigating today’s mortgage market, we’re here to help.

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