Market Shifts Are Coming—Are You Prepared?
If you’re planning to buy, sell, or renovate a home in Burlington, the latest U.S. tariffs on Canadian materials could significantly impact your costs. But what does that mean for you—and should you act now before the market shifts again?
Having navigated Burlington’s real estate market for nearly three decades, we’ve seen firsthand how economic forces shape our local housing landscape. From the early 2000s tech bubble to the 2008 financial crisis, the 2017 foreign buyer tax, and the COVID-19 boom, each shift has brought unique challenges and opportunities.
Now, with U.S. tariffs driving up costs on essential building materials, we are facing yet another shift—one that demands informed decision-making. Here’s what you need to know.
How the U.S. Tariffs Could Affect Burlington’s Market
The U.S. has introduced tariffs on key Canadian exports such as steel, aluminum, and lumber—materials essential to homebuilding and infrastructure projects. These tariffs are expected to drive up construction costs, exacerbate supply chain issues, and potentially slow down new housing developments in Burlington.
Key Anticipated Effects:
Higher Construction Costs – Burlington developers and home builders will likely face increased expenses, which could translate into higher home prices for new builds and renovations.
Inflationary Pressures – Rising material costs could contribute to inflation, leading to increased mortgage rates and tighter affordability for buyers in Burlington’s competitive market.
Investor Uncertainty – With potential economic downturns linked to trade disputes, real estate investors may adopt a cautious approach, leading to longer time-on-market for properties and fewer bidding wars.
Extended Time for Sale – As affordability tightens due to higher home prices and mortgage rates, Burlington homes may take longer to sell, particularly in mid-range and luxury segments.
Lessons from Past Market Disruptions
Burlington’s real estate market has weathered many economic shifts. Looking at past disruptions gives us clues about what to expect:
The 2008 Financial Crisis
- Slowed housing demand in Burlington.
- Tighter mortgage lending rules, impacting first-time buyers.
- Increased caution among developers, reducing new housing supply.
The 2017 Foreign Buyer Tax
- Immediate price drop in higher-end home sales.
- Increased demand from local buyers who previously struggled to compete.
- Market stabilization in the following years.
The COVID-19 Real Estate Boom (2020-2022)
- A surge in home prices, with multiple-offer scenarios becoming the norm.
- Shift toward suburban properties as buyers moved away from major cities.
- Slowdown in new construction due to labor shortages and supply chain disruptions.
How This Compares to Past Market Shifts
Unlike the financial crisis, which was rooted in global credit markets, or the pandemic, which altered consumer behavior, U.S. tariffs directly impact the cost of building homes in Burlington. This makes it more comparable to the 2017 foreign buyer tax, which influenced affordability and investment trends.
However, unlike the foreign buyer tax, tariffs target material costs rather than speculative investment. This means:
- Builders and developers will bear the brunt of rising costs, slowing down new housing projects.
- Affordability could be impacted across all housing types, not just high-end properties.
- The long-term outcome depends on whether trade tensions ease or persist.
What Should Buyers & Sellers Do Now?
For Homeowners & Sellers:
Thinking of Selling? Act Before Costs Rise – If tariffs continue driving up construction costs, fewer buyers may afford new builds, increasing demand for resale homes. Selling before affordability tightens further could put you in a strong position.
Strategic Pricing is Key – As affordability decreases, correctly pricing your home will be crucial to attracting buyers and avoiding extended time on the market.
For Buyers:
Lock in Mortgage Rates Now – Higher material costs may contribute to inflation, leading to rising interest rates. Securing financing sooner rather than later can help buyers avoid higher borrowing costs.
Consider Resale Homes Over New Builds – With the potential for construction delays and higher prices on new builds, resale homes may offer better value for buyers looking for affordability.
Expand Your Search Criteria – With market conditions shifting, looking at different property types or nearby neighborhoods may yield better options.
How to Stay Ahead in Burlington’s Changing Market
Having guided clients through multiple market cycles, the Liv Well Group understands the importance of adapting to change. The U.S. tariffs bring new challenges, but just like in 2000, 2008, 2017, and COVID-19, Burlington’s real estate market will adjust.
Market shifts create opportunities—but only if you have a strategy.
Want to sell before pricing changes impact demand? Need a personalized plan to maximize your home’s value in today’s market?
Let’s map out your best move—contact us today for a FREE consultation.
