With more than 25 years of experience in the Greater Toronto Area’s residential real estate market, Bruno Galluzzo is a trusted broker known for his expertise, integrity, and results-driven approach. A licensed real estate broker in Ontario, Mr. Galluzzo has spent his career with Royal LePage Credit Valley Real Estate, where he has consistently delivered outstanding service to buyers, sellers, and investors alike. He specializes in property sales and acquisitions, market trend analysis, and client negotiations. Bruno’s deep understanding of real estate laws, marketing strategies, and economic shifts positions him as a reliable voice on how broader economic policy—such as international tariffs—can impact Canadian real estate. He is a member of the Toronto Real Estate Board, the Ontario Real Estate Association, and the Canadian Real Estate Association, and was awarded the prestigious President’s Gold award in 2023.
In two separate press releases, the Canadian Real Estate Association (CREA) reported on how the recent US tariffs have impacted residential real estate in the country. Tariff impacts on residential real estate have been on foreign investment, construction costs, and mortgage rates. The tariffs have also influenced buyer confidence, prices, and sales.
In a March 2025 White House press release, the Trump Administration announced adjustments to tariffs imposed on Canada and Mexico, mainly to address issues related to the illicit drug trade along the country’s northern and southern borders. Experts predict that, among other impacts, the country’s foreign investment sector will be adversely affected. Uncertainty and a weakening Canadian dollar are at the center of creating a scenario where foreign investors are attracted to the housing market. This phenomenon might lead to higher home prices.
Building materials will also become more expensive for residential home builders. Many sources state that prices will increase for lumber, steel, and PVC piping, generally speaking. In the case of Canadian residential construction, areas of concern are steel, aluminum, and mechanical equipment, namely HVAC equipment, which accounts for 40 percent of the mechanical equipment needed in residential construction in the country. The 25 percent tariff also impacts steel-related products, such as boilers, chillers, and fabricated steel products. Ultimately, in the long term, these higher prices contribute to inflation.
With inflation looming on the horizon, many experts report that the Bank of Canada to reduce rates, including mortgage rates. Higher prices cause consumers to spend cautiously because the dollar loses value. Moreover, investors tend to place capital in safer investments like bonds. In response, the government reduces interest rates to encourage consumers to spend, which many experts predict will happen. An advantage for borrowers is that reduced mortgage rates mitigate inflationary impacts and can encourage potential homebuyers to purchase and existing ones to refinance.
All these forces have the potential to converge on the Canadian residential market, especially in the case of getting potential homebuyers off the sidelines. A March 2025 CREA press release reported that, considering the tariffs, which went into effect in early March, many decided to wait on purchasing a home. This information is based on figures that reported home sales fell by 9.8 percent month-over-month (January 2025) and 10.4 percent year-over-year (since February 2024), with experts attributing this fall to the announcement of increased tariffs. These declines were across all regions and markets, but were pronounced in Greater Toronto and Greater Golden Horseshoe areas.
In addition to consumers being wary of investing in a home, tariffs have also impacted prices. April 2025 CREA figures report that prices fell by 1 percent month-over-month (since March 2025) and decreased by 2.1 percent year-over-year (since April 2024). While home prices have seen a decrease, experts state that the increased cost of materials could add $15,000 to $30,000 to the cost of building a home, which could result in home prices increasing from their first-quarter declines.
Finally, experts state that tariff-related impacts also include declining home sales. Month-over-month, national Canadian home sales decreased by 4.8 percent in March 2025 and are down by 20 percent since November 2024. Again, the CREA attributes this decline in home sales to consumer uncertainty about how tariffs will impact their budgets. The largest of these declines have been in British Columbia and Ontario, with declines in all markets but a few. This phenomenon has translated into more houses on the market, a historic level of available homes, and lower sales in the last decade.
CREA represents over 160,000 realtors nationwide. For more information about tariffs and their impact on Canadian residential real estate, please visit CREA at www.crea.ca/who-we-are/mission/.
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