Tariffs offer a silver lining to Sudbury home owners, real estate agent says

A real estate agent in Sudbury, Ont., says American tariffs on Canadian goods aren't all bad, if you're looking to sell your home.

Tristan Ritchie, a sales representative with Lake City Realty, delivered mailers to homeowners in the Sudbury area ahead of U.S. President Donald Trump's plans to impose tariffs on Canadian imports by Tuesday.

His message: tariffs could lead to an increase in home prices in the area, which would benefit homeowners looking to sell their properties.

"A lot of people were actually scared of the tariffs, which I understand," Ritchie said.

"But I actually have a little bit of a different view on it. And I don't think it's going to cause the house prices to go down. But a few of the sellers are in that thought process."

To boost spending, Ritchie said the Bank of Canada would likely respond to tariffs by lowering interest rates.

Lower interest rates mean it costs less to borrow money for a mortgage, which leads to more potential homebuyers and higher prices as a result.

Ritchie said demand for the limited stock of homes in Sudbury is "already through the roof," and he doesn't expect house prices to fall unless tariffs lead to extensive job losses in the area.

But a report from the Canadian Chamber of Commerce last month said Sudbury would be the most resilient bigger city in Canada in the face of tariffs. 

The chamber ranked Canada's 41 largest cities on their vulnerability to U.S. tariffs, compared to the Canadian average.

Sudbury's biggest export is minerals like nickel and copper, of which around half go to the U.S. But the rest are exported to countries like China, Japan and the Netherlands.

Ritchie said some homes in Sudbury are selling for as much as $100,000 over asking.

Due to limited supply, he said, it's not uncommon for a house priced under $500,000 to attract between 30 and 50 interested buyers.

"We've seen a flood of buyers enter the market way earlier than we normally would like. We're calling it an early spring," he said.

But Ritchie added that the housing supply isn't expected to improve under tariffs, since the costs of building materials would increase.

In an email to CBC News, Cambrian College economics professor Mohammad Safavi said tariffs could have "severe affordability consequences" on northeastern Ontario's housing market.

"In the short run, we'll see increased costs for goods and services, particularly for construction materials like steel, aluminum, and lumber, which are crucial for the housing  market. Builders will face higher costs, and they'll pass those costs onto home buyers and  renters," he said.

Home sales slumped in January

In an economic outlook published by TD on Feb. 19, the bank said even the threat of U.S. tariffs appeared to be weighing on homebuying confidence.

"Sales slumped in January while new listings surged, as buyers were anxious and sellers hurried to list their properties ahead of potential economic softness," the report said.

"The imposition of steep tariffs would hurt job markets and dampen consumer moods, negatively impacting housing demand and home price growth."

But the outlook said the Bank of Canada would likely cut interest rates faster in a tariff scenario, "providing some offset to the housing market."