Tariffs Have Hit—Here’s What It Means for the Housing Market

Hello Faris Insiders,

At Faris Team, we are committed to keeping you informed about major economic developments that impact the Ontario housing market. Over the past few weeks, one of the biggest stories has been the U.S. tariffs on Canadian goods, which have introduced uncertainty into multiple industries—including real estate.

Recent Updates on U.S. Tariffs

Initially, the U.S. government imposed a 25% tariff on general imports and a 10% tariff on energy products like oil and electricity, with the measures taking effect on March 4, 2025. However, just two days later, on March 6, 2025, President Donald Trump signed an executive order pausing these tariffs for one month. This decision followed discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, focusing on economic concerns, border security, and trade negotiations.

While this temporary pause offers some relief, the uncertainty surrounding potential future tariffs continues to impact consumer confidence, mortgage rates, and housing prices. Whether you're a homebuyer, seller, or investor, it’s crucial to understand how these factors could shape the real estate market in Simcoe County and beyond.

What Does This Mean for Ontario’s Housing Market?

While trade policies might not seem directly related to real estate, they have significant ripple effects on home prices, mortgage rates, and investment trends. Let’s break it down:

1. Economic Outlook & Market Resilience

Despite concerns over tariffs, Canada's economy has remained stable in early 2025:

• Employment Growth: In February 2025, Canada gained a net 1,100 jobs, keeping the unemployment rate steady at 6.6%.

• Industrial Capacity Expansion: The capacity utilization rate increased to 79.8% in Q4 2024, with growth in

  construction, petroleum, and coal manufacturing—sectors that directly impact real estate development and housing supply.

These positive indicators show that Ontario’s economy is resilient, which is good news for homebuyers and sellers.

2. Mortgage Rates Are Holding Steady—For Now

One of the most significant impacts of the tariff uncertainty has been on mortgage rates in Canada.

• Lower Fixed Mortgage Rates: The economic uncertainty has led to a flight to safety among investors, increasing demand for government bonds and lowering bond yields. Since fixed mortgage rates are directly tied to bond yields, this has resulted in more favorable mortgage conditions for buyers.

• What This Means for You: If you’re considering buying a home, now is an excellent time to lock in a lower fixed mortgage rate before further economic shifts occur.

Pro Tip: Even if you’re not actively house-hunting, securing a pre-approved mortgage at today’s rates can protect you from potential rate hikes in the coming months.

3. Why It’s Not All Doom and Gloom

While trade tensions and market shifts can cause anxiety, there are strong reasons to stay positive about Simcoe County’s housing market:

✅ Strong Sales Growth: In January 2025, home sales in Simcoe County surged by 27.7% compared to the previous year, showing that buyers are still confident in the market.

✅ Home Prices Are Rising: The average sale price reached $841,757, a 6.6% year-over-year increase, proving that real estate remains a valuable investment.

✅ Favorable Market Conditions for Sellers: With inventory levels remaining tight and demand high, homeowners looking to sell in 2025 are in a strong position.

Bottom Line: Despite short-term economic shifts, real estate in Simcoe County continues to be a solid investment.

What Should Buyers and Sellers Do Now?

If you’re thinking about buying or selling a home in Ontario, now is the time to take action. Market conditions are still strong, mortgage rates are favorable, and home values continue to rise. Here’s how to make the most of these opportunities:

For Home Sellers:

• Get a Free Home Evaluation – Discover your home's current value and learn how to maximize your sale price.

• Leverage High Buyer Demand – With home prices rising and sales up, now is a great time to list your property.

For Home Buyers:

• Lock in a Low Mortgage Rate – With fixed mortgage rates declining, now is an excellent time to secure a great rate before potential increases.

• Consult with a Local Realtor – Gain insights into the best properties in Simcoe County and surrounding areas.

For Investors:

• Capitalize on Strong Market Growth – With home prices continuing to rise, now is a prime time to invest in rental properties or resale opportunities.

• Contact us today to schedule a consultation with a trusted real estate professional.

Final Thoughts: Stay Positive and Proactive

The real estate market is always evolving, and staying informed is the best way to make smart decisions. While global trade policies and economic conditions may seem unpredictable, the fundamentals of Ontario’s housing market remain strong. In times of economic fluctuation, staying informed and proactive is crucial. If you're considering buying or selling a home in Simcoe County, now is an opportune time to:

The market is changing, but opportunities remain. Contact us today to discuss your next move with a trusted real estate professional.

Note: The information provided is based on current market trends and projections. Economic conditions can change, so it's advisable to consult with a real estate professional for the most up-to-date insights.