In today’s interconnected global economy, political and economic decisions between major trading partners can have far-reaching consequences. One of the most pressing concerns for many right now is the ongoing tariff tensions between Canada and the United States. While tariffs are typically tools to regulate international trade, their ripple effects are reaching deep into local communities—especially impacting the real estate market in Durham Region, including Pickering and Ajax.
From rising construction costs to buyer hesitation and market slowdowns, the effects are becoming increasingly evident. Here's how these changes are shaping real estate trends in Pickering and Ajax—and what buyers and sellers need to know to stay ahead.
Rising Construction Costs and Their Impact on Durham Home Prices #AskMichelle
One of the most immediate and tangible effects of tariffs is the rising cost of construction materials. Tariffs on imports like steel, aluminum, and softwood lumber have created a ripple effect across the construction industry in Durham Region.
According to the National Association of Home Builders (NAHB), these increased costs can raise the price of building a single-family home by $7,500 to $10,000. For homebuyers in Pickering and Ajax, this could mean fewer affordable new builds. For builders, shrinking margins may lead to project delays or cancellations—further tightening supply in an already competitive market.
For Buyers: With inventory tightening and prices rising, acting now could help you lock in better terms before further increases.
For Sellers: If you’re considering listing your home in Pickering, demand remains strong despite economic uncertainty.
Reduced Housing Starts and Delays in New Development Projects #AskMichelle
As construction becomes more expensive, developers across Durham are pulling back. In February 2025, Canadian housing starts fell by 4%, well below expectations. This slowdown is being felt in Pickering and Ajax, where new home developments are vital to meeting rising demand.
With fewer new builds on the horizon, local inventory could remain limited—continuing to push buyers into the resale market and keeping pressure on prices.
What Buyers and Sellers in Pickering Need to Know #AskMichelle
Buyer behavior is shifting. Many are taking a “wait-and-see” approach due to economic uncertainty. In Durham Region, February 2025 saw an 18% drop in sales year-over-year, even with a 19% increase in listings. Nationally, CREA reports that home sales dropped 9.8% from January to February—the steepest decline since May 2022.
In Ontario:
- Greater Toronto Area: Resales dropped 28.5% month-over-month
- Hamilton: 20%
- Niagara: 17%
This signals rising caution, especially in key markets like Pickering and Ajax.
How to Make the Right Move Despite Market Uncertainty #AskMichelle
Tariffs can also affect mortgage rates. If tariffs drive inflation, interest rates could increase—adding to affordability concerns. However, many experts expect borrowing costs to fall later in 2025, potentially boosting activity in the second half of the year.
Locally in Pickering and Ajax, homebuyers and sellers should understand that tariffs are just one part of a bigger picture. With an election approaching and rate pauses likely, the market may stay quiet until May.
But now is still a strategic time to act.
Buyers: Consider entering the market before potential interest rate shifts later in the year.
Sellers: Strong demand continues for well-priced homes in Pickering and Ajax, especially as new construction slows.
Investor Hesitation and Foreign Interest in Durham Real Estate #AskMichelle
Economic volatility also impacts investor behavior. Many domestic and foreign investors are pausing their activity in Pickering and Ajax real estate, waiting for more stable conditions. While this might mean less competition in the short term, it also reflects a cautious approach to Canada’s real estate market.
Broader Economic Impacts on the Pickering and Ajax Real Estate Market #AskMichelle
Tariffs don’t just impact real estate—they affect industries like manufacturing and agriculture, which drive local employment and economic stability. A slowdown in these sectors can result in job losses, reduced income, and lower consumer confidence, which directly impacts home buying power.
As affordability declines, so does demand—feeding into a feedback loop that cools the market and puts pressure on adjacent industries like mortgage lending, renovation services, and real estate agencies.
Final Thoughts: Navigating the Market in Pickering and Ajax #AskMichelle
The ongoing Canada–U.S. tariff situation is a strong reminder of how local markets are affected by global politics. While these challenges are real, they also create new opportunities for those who are informed and ready to act.
If you’re thinking about buying or selling in Pickering or Ajax, understanding how tariffs are shaping the local market can give you an edge.
Need Expert Guidance? #AskMichelle
At the Michelle Fraser Team, we specialize in helping buyers and sellers navigate the Pickering and Ajax real estate markets with clarity and confidence. Whether you're planning to list your home or make a strategic purchase, we’re here to help you move forward—stress-free and well-informed. Contact me today at (905) 428-3628 or visit Ask Michelle to learn how tariffs and market shifts may affect your next move—and how we can help you make the most of it.
