Understanding Tariffs and Their Impact on Calgary’s Real Estate Market: An In-Depth Guide

As a realtor, my goal is to provide valuable insights into the factors that impact Calgary’s real estate market. One significant factor currently influencing the housing market is the implementation of tariffs. Tariffs, or taxes on imported goods, can directly affect the cost of materials used in home construction, renovation, and furnishing.

In this guide, I’ll break down what tariffs are, how they impact the real estate market, and what buyers and sellers need to know to navigate these changes effectively.

What Are Tariffs and Why Do They Matter?

Tariffs are taxes imposed by governments on imported goods. They are designed to protect domestic industries by making foreign goods more expensive, encouraging local purchases. However, tariffs can also increase costs across industries, including real estate, by raising the prices of materials and products used in homebuilding and renovation.

How Do Tariffs Affect Homebuyers and Homeowners?

When tariffs are applied to construction and home improvement materials, the cost of those goods rises. This can lead to:

• Higher home prices due to increased building costs.

• More expensive renovations and repairs.

• Reduced new home construction, which can limit market inventory.

Let’s explore the key materials impacted and how this affects Calgary’s real estate market.

Impact of Tariffs on Construction Materials and Appliances

1. Lumber and Wood Products

Lumber is essential in home construction, from framing to flooring and cabinetry. Tariffs on softwood lumber exports have driven up prices, increasing home construction costs by thousands of dollars. Builders may absorb these costs, reducing their margins, or pass them onto buyers in the form of higher home prices.

2. Steel and Aluminum

Steel and aluminum are crucial for structural components, siding, roofing, and windows. Tariffs on these materials lead to higher prices, making both construction and home appliances more expensive. Items such as refrigerators, washers, and dryers see price hikes when raw material costs rise.

3. Concrete, Glass, and Paint

Tariffs also impact essential materials like concrete (for foundations and driveways), glass (for windows and doors), and paint. Increased costs in these areas make both new builds and renovations more expensive for homeowners and buyers.

How Tariffs Impact Calgary's Real Estate Market

For Homebuyers:

• Higher Prices for New Homes: Rising construction costs force builders to raise home prices. Waiting to buy could mean paying more in the future.

• More Expensive Renovations: If you're buying a home that requires upgrades, material costs could increase your renovation budget.

• Limited Inventory: Builders may slow or delay projects due to higher costs, reducing new home availability and increasing demand for existing homes.

For Homeowners Considering Selling:

• Increased Demand for Existing Homes: As new home prices rise, more buyers may turn to resale properties, driving up demand.

• Short-Term Opportunity: Selling now could allow you to capitalize on higher demand before rising costs affect affordability.

• Potential Market Shifts: Delaying a sale may lead to fewer buyers in the market as affordability decreases due to rising material and mortgage costs.

Why Acting Now Can Be Advantageous

For Buyers:

• Lock in current home prices before further cost increases.

• Avoid rising mortgage rates and potential affordability challenges.

• Secure a property while inventory remains available.

For Sellers:

• Take advantage of higher demand while new home prices push buyers toward resale properties.

• Maximize your home’s value before potential market slowdowns.

Key Takeaways

1. Tariffs on materials like lumber, steel, and appliances increase construction and renovation costs.

2. Higher material costs drive up new home prices and renovation expenses.

3. Rising costs may shift demand to existing homes, benefiting sellers.

4. Acting sooner can help buyers avoid higher prices and limited choices.

Final Thoughts

The impact of tariffs on construction materials is a key factor shaping Calgary’s real estate market. Buyers should consider acting before costs rise further, while sellers may benefit from increased demand for resale homes. Staying informed and proactive is crucial in navigating these changes.

Disclaimer: This guide is for informational purposes only and does not constitute legal or financial advice. The impact of tariffs on Calgary’s real estate market can vary based on individual circumstances, and it’s important to consult with a professional to understand how these changes may affect your specific situation.

If you need guidance or have questions I’m here to help. Contact me today.

Calgary Real Estate Market Update – February 2025

Welcome to your detailed breakdown of Calgary’s housing market for February 2025! Whether you're a first-time homebuyer, seasoned investor, or just curious about the market, this blog will help you understand what’s happening in Calgary real estate — in simple, easy-to-follow language.

How is the Calgary Real Estate Market Doing in February 2025?

Calgary’s housing market is showing positive growth with stable prices and more homes available compared to last year. This means if you're thinking of buying or selling, now is a great time to explore your options.

According to the Calgary Real Estate Board (CREB), 1,923 homes were sold in February 2025. That's more than what we usually see this time of year — proving that Calgary’s real estate market is still strong despite all the changes happening in the economy.

More Homes Available for Buyers

One of the biggest changes this month is that there are more homes available compared to last year. Calgary now has 4,325 homes listed for sale — that’s 76% more homes than last February!

What does this mean for you?

• If you're a buyer, you have more options to choose from.

• If you're a seller, it's still a great time because buyers are actively looking.

The average time it would take to sell all the homes available (called “months of supply”) is 2.4 months — which means Calgary is in a balanced market where neither buyers nor sellers have a big advantage.

Calgary Housing Prices – What Are Homes Selling For?

Calgary’s home prices are steady and rising slowly — which is a good sign! The average price for all types of homes is $587,600 — about 1% higher than last year.

Here's how prices look for different types of homes:

• Detached Homes: $771,400 (+5.5%) – Popular for families with more space.

• Semi-Detached Homes (Duplexes): $693,200 (+7.2%) – Great middle option with fast price growth.

• Townhouses: $453,900 (+3.1%) – Affordable and perfect for first-time buyers.

• Apartments/Condos: $338,100 (+4.2%) – Best option for budget-friendly living or investors.

What’s Happening in Calgary’s Neighbouring Cities?

Calgary isn’t the only place seeing positive trends — nearby towns are also growing:

• Airdrie: $541,200 (+1.9%) – Popular for families.

• Cochrane: $580,400 (+5.3%) – Offers scenic living.

• Okotoks: $570,700 (+1.4%) – Great community lifestyle.

• Chestermere: $705,200 (+2.1%) – Known for lakeside living and family-friendly neighborhoods.

Commercial Real Estate in Calgary – What's New?

Calgary’s commercial real estate market is seeing steady demand as businesses grow and new opportunities emerge. The biggest trends right now include:

• Retail Spaces: Small stores, cafes, and restaurants are seeing high demand, especially in busy neighborhoods.

• Warehouses: With more businesses needing storage and distribution spaces, warehouses are becoming a top investment choice.

• Office Spaces: Downtown Calgary and industrial areas are seeing consistent demand for office spaces, especially those offering flexible layouts.

If you're considering investing in commercial real estate, now is a great time to explore your options. Whether you're looking to lease, buy, or invest, I can help you navigate the market and find the right property.

Final Thoughts – Is Now a Good Time to Buy or Sell in Calgary?

Absolutely! Calgary’s market is offering balanced opportunities for both buyers and sellers right now.

If you're thinking of buying, there are more homes available than last year — giving you better choices. If you're selling, home prices are stable and still rising slowly, which means you can get a great value for your property.

Whether you're buying your first home, upgrading, or investing in commercial real estate, I’m here to help guide you through every step of the process.

Let’s Connect!

I’m Salman Bhojani — your Calgary Residential & Commercial Realtor. If you're curious about the market or have any questions, feel free to reach out to me.

Disclosure

All the information provided in this blog is based on the most recent market data available from the Calgary Real Estate Board (CREB) and is intended for informational purposes only. Market conditions can change, and it's always best to consult with a professional realtor for the latest updates and personalized advice.