Recent U.S. tariffs—such as increased duties on steel, lumber, and other imports—are expected to ripple through the Canadian economy, particularly in the housing market. With Toronto’s already high prices and affordability concerns, these tariffs could further strain both buyers and sellers. But for those considering downsizing, this shift presents both challenges and opportunities.
Rising Construction Costs and Market Pressures
A substantial portion of building materials used in Canadian construction come from the U.S. With new tariffs driving up the cost of steel, lumber, and electrical components, developers and homebuilders will face higher expenses. These costs will ultimately be passed on to buyers and renters, further inflating Toronto’s already expensive housing market.
For seniors looking at downsizing into condos or retirement communities, these increased costs could make new construction less affordable. Additionally, renovation expenses for those preparing to sell their homes may also climb, affecting homeowners’ ability to maximize their property’s value.
Interest Rates and Market Slowdowns
Higher costs due to tariffs could contribute to inflation, potentially prompting the Bank of Canada to raise interest rates. This would increase mortgage costs, making it harder for buyers to afford homes and potentially slowing the market. For those planning to sell, this could mean fewer qualified buyers and longer selling timelines.
What This Means for Downsizers
If you’re thinking about downsizing, these market shifts present a critical decision point. On one hand, existing home values may rise due to supply constraints, giving sellers an advantage. On the other, if borrowing becomes more expensive, demand could cool, making it harder to sell quickly.
Is Now the Right Time to Downsize?
Pros of Downsizing Now:
✅ Maximize Your Home’s Value
The housing market is still strong, and selling now could get you top dollar before interest rates or economic uncertainty slow things down.
✅ Avoid Rising Renovation Costs
Home updates could get pricier with increasing material costs, so tackling them now may save you money.
✅ More Buyer Interest
With mortgage rates still manageable, there’s a larger pool of buyers now compared to future potential rate hikes.
✅ Smoother Transition to a New Home
Downsizing to a smaller home or retirement community now could help you lock in a better deal before construction prices increase, with the condo market currently at an all-time low, giving you more negotiating power.
Cons of Downsizing Now:
❌ Potential for Market Growth
Home values may continue to increase, and selling too early could mean missing out on those gains.
At Alivio Downsizing, we specialize in customized downsizing, estate clearing, and senior moves, helping you make the most of your home’s value while minimizing stress. If you’re considering downsizing, let’s explore your options and help you make the right choice for your future.
Contact us today to get started on a smooth, cost-effective transition.
info@aliviodownsizing.com
437-329-6873
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