The real estate market is always evolving, but recent tariff policies are adding new layers of complexity for home buyers and sellers in Canada, particularly in London, Ontario. With higher costs for construction materials, potential mortgage rate increases, and affordability challenges, understanding these economic shifts is crucial for making informed decisions in 2025.

1. Increased Construction Costs

New tariffs on building materials such as lumber, steel, and aluminum are driving up construction expenses. As a result, newly built homes are becoming more expensive, which can affect both buyers looking for affordable options and sellers competing with higher-priced new builds. If you’re considering selling your home in London, Ontario, rising construction costs may work in your favor by making existing homes more attractive compared to new construction.

2. Housing Affordability Challenges

With the combination of rising construction costs and mortgage rate hikes, housing affordability could take a hit. First-time home buyers, in particular, may find it more difficult to enter the market. Sellers in London should be prepared for a potential slowdown in demand, especially in more price-sensitive segments.

3. Impact on Renovations and Remodeling

Whether you’re buying a fixer-upper or upgrading your home before selling, renovation costs are expected to rise due to tariffs on imported materials. Prices for appliances, cabinetry, and fixtures may increase, making home improvements more expensive. Buyers should factor these costs into their budgets, while sellers should consider minor upgrades that add value without breaking the bank.

4. Regional Market Impacts

Tariffs can have a ripple effect on local economies, particularly in areas reliant on industries affected by trade policies. In London, Ontario, where the economy is influenced by manufacturing, healthcare, and education sectors, changes in trade policies could impact housing demand and property values. Buyers and sellers should pay close attention to how their local market responds to these economic changes.

What Buyers and Sellers Can Do Now

For home buyers, keeping an eye on mortgage rate trends and exploring different financing options is key. If possible, locking in a lower rate sooner rather than later could save you thousands over the life of your loan.

For sellers, pricing your home competitively and ensuring it’s move-in ready can make it more attractive to cost-conscious buyers navigating rising expenses. Investing in minor, high-impact upgrades can also help your home stand out in a shifting market.

As tariffs continue to shape the economic landscape in Canada, staying informed is essential for making the best real estate decisions in London, Ontario in 2025. Whether you’re buying, selling, or simply monitoring the market, understanding these factors will help you navigate the changing landscape with confidence.