How Tariff Uncertainty is Impacting Calgary's Real Estate Market

Introduction

The Canadian real estate market is facing a new challenge: tariff uncertainty stemming from the ongoing trade war with the United States. This issue has created a ripple effect across the country, and Calgary's real estate market is feeling the impact. For homebuyers, sellers, and investors, understanding these changes is crucial to making informed decisions in 2025.

Market Trends & Analysis

National Trends

According to the Canadian Real Estate Association (CREA), February 2025 saw the lowest level of home sales since November 2023:

• National home sales fell by 9.8% month-over-month.

• The MLS® Home Price Index (HPI) declined by 0.8%, marking the largest monthly decrease since December 2023.

This decline is largely attributed to tariff uncertainty, which has made potential buyers hesitant to commit to major financial decisions.

Calgary's Real Estate Market

Calgary's market is closely mirroring these national trends:

• Sales and new listings have declined. The number of newly listed properties dropped by 12.7% month-over-month, reversing the gains seen in January.

• The sales-to-new-listings ratio now stands at 49.9%, indicating a balanced market but with a cautious sentiment.

• The national average sale price decreased by 3.3% year-over-year, and Calgary has also seen a similar dip. While lower prices present an opportunity for buyers, many remain on the sidelines due to market uncertainty.

Impact on Buyers & Sellers

• For Buyers: The market shift presents an opportunity to negotiate better deals, especially with lower interest rates now in effect.

• For Sellers: Strategic pricing and effective marketing are essential to attracting serious buyers in a more competitive environment.

• For Investors: Calgary’s real estate market has historically shown resilience, making it crucial for investors to focus on long-term trends rather than short-term fluctuations.

JN Real Estate Group’s Perspective

At JN Real Estate Group, we believe that every challenge presents an opportunity:

• Buyers: Now is the time to leverage lower prices and interest rates.

• Sellers: Presentation and strategic pricing are key to standing out.

• Investors: Keeping an eye on long-term market trends can lead to smart investment decisions.

If you're considering buying, selling, or investing, our team is here to provide expert guidance tailored to your needs.

TL;DR (Quick Summary)

✅ National home sales dropped 9.8% month-over-month in February 2025.
✅ Calgary’s market reflects the national trend, with declines in sales and new listings.
✅ Tariff uncertainty is the primary factor causing buyer hesitation.
✅ Lower prices and interest rates create opportunities for buyers and investors.
✅ Sellers must adapt to a more competitive market environment.

Navigating the real estate market during uncertain times requires expert guidance. Book a consultation call with JN Real Estate Group today to discuss your real estate goals and how we can help you achieve them.