Real Estate Talk:
Summer market Expectations

Tariffs could bring on inflation, higher interest rates and lower property prices

By Joseph Marovitch

March 27, 2025

In the past, the summer market was busy between May and mid-July when the construction holiday began. There has always been an audience before the construction holidays, as property looks marvelous in summer with greenery, sun, bright interiors and easy access, as opposed to winter.

This may be the case this summer, however there is uncertainty as Trump continues to threaten tariffs like a yo-yo – one day they are coming, the next they are delayed. These words, before action, affect stock markets worldwide as vendors raise the cost of their goods and services in anticipation of higher inflation, as do suppliers.

These actions already cause inflation and, therefore, an increase in carrying costs for a property. Should the tariffs be fully implemented, there will be higher inflation followed by higher interest rates to combat the inflation. The two effects of the threats on implementation will be higher prices for goods and services and lower property prices as demand wanes. Sellers do not want to sell at a discount, and buyers do not want to incur long-term higher carrying costs. More affluent buyers will be looking at a buyer’s market where property can be purchased at a discount.

Should the tariffs be fully implemented, there will be higher inflation followed by higher interest rates to combat the inflation. The two effects of the threats on implementation will be higher prices for goods and services and lower property prices as demand wanes.

Since there will always be buyers searching for opportunities, a seller may sell at a lower price but possibly with better terms and all-cash deals.

Therefore, whether inflation and rates increase, there are still opportunities for buyers and sellers. If one is selling, it is wise to put one’s best foot forward and prepare the property with a beautiful and groomed exterior façade and a picture-perfect interior. Note that buyers searching for property in the summer months are highly motivated and in a hurry to complete transactions before leaving for the holiday.

In this type of market, experience and somewhat sophisticated negotiation are required to get the best price and terms, and to avoid all possible issues.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: Explanation of a second-tier offer when there is already an accepted conditional offer

State of the market

Today, Trump announced 25% tariffs on all imported cars to the U.S. The other day, Trump threatened tariffs on all steel and aluminum. Companies in the U.S. are integrally integrated with the Canadian car industry for parts. Who will be paying those tariffs till the U.S. becomes fully self-sufficient? The U.S., that is who. Nonetheless, this unnecessary and irresponsible tariff war is affecting prices across the board for Canadians. Some of the perks of this presidency are that U.S. citizens with skills and experience are entering Canada to acquire citizenship or at least temporary visas.

‘For now, the market is moving, buyers and sellers are active and taking advantage of the spring market with the current low interest rates, thereby protecting themselves from possible interest rate hikes in the future.’

For now, the market is moving, buyers and sellers are active and taking advantage of the spring market with the current low interest rates, thereby protecting themselves from possible interest rate hikes in the future. There are opportunities everywhere to both purchase and sell in residential and multi-income residential.

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