If you’ve been thinking about buying a home, there’s good news: right now, is a great time to make your move.
While the future of Canada’s economy is uncertain due to the current political environment and the potential imposition of tariffs, inflation in both Canada and Alberta have remained steady and stable.
In Alberta, the annual inflation rate has remained firm at 2.5%, an improvement from last year's 2.9%. Looking ahead, the forecast for 2025 predicts inflation will moderate further to 2.2%, which is great news for those in the market for a new home. The demand for housing in Alberta continues to be strong, with sales expected to remain 20% above the historical average. This shows the ongoing strength of the real estate market and the increasing need for new homes.
However, there are external factors to consider. The new U.S. administration’s plan to impose 25% tariffs on imported goods could have a significant impact on the housing market. Given the close integration of the Canada-U.S. supply chains for residential construction materials, these tariffs could drive up the cost of construction and possibly affect interest rates.
With potential increases in material costs on the way, many industry experts believe that now may be the best time to act if you’re thinking about purchasing a home. Although market predictions suggest a steady period soon, tariffs could shift this dynamic. If you’re considering buying a home, especially a new build, acting now could help you avoid the increased prices that might come with higher construction costs.
Additionally, interest rates remain relatively favourable, providing buyers with the chance to lock in better financing terms. The longer you wait, the more likely it is that both home prices and interest rates will rise due to external factors like tariffs. If you’ve been on the fence about buying, there’s no time like the present to take the plunge and secure your future home!
Connect with our sales team to learn more.
SOURCES:
The Twenty-Four - Inflation cooperation: Staying near target in January
Impacts of Trump Tariffs on Canadian Residential Construction Sector - Canadian Home Builders' Association
U.S. tariffs threat means Calgary real estate could go either way | Calgary Herald