The significant risk that tariffs pose to Canada\u2019s economy casts a potentially dark shadow over the housing market. Any economic turbulence arising from tariffs would be felt by participants, whose confidence is critical to the stability of the housing market.<\/p>\n
There\u2019s considerable uncertainty about the likelihood of tariffs, and their size and timing as well as retaliatory measures and policy responses. The U.S. administration\u2019s decision on Feb. 3 to pause on implementing blanket tariffs<\/a> may prove to be just a temporary reprieve. Or, it could indicate a preference to avoid worst-case scenarios. Indeed, its announcement of a 25% tariff on all steel and aluminum imports a week later hints a more targeted approach to trade actions.<\/p>\n Therefore, assessing the outlook for Canada\u2019s housing market at this juncture is like putting a price on a home before an earthquake\u2014it\u2019s hard to know what shape the structure will be in at the end of the day. Still, we highlight some of the key themes to watch out for, which will shape how the housing market performs in 2025. <\/p>\n Aside from elevated\u2014and likely persistent\u2014risks the housing market\u2019s story should be one of continued recovery in 2025. We would expect lower interest rates will reduce ownership costs and help unlock pent-up demand. <\/p>\nLower interest rates heat up demand<\/h2>\n