How the Canada-U.S. trade war impacts the Canadian real estate market using HOCKEY TERMS 🏒🇨🇦
- Shamil Jessa
- Mar 10
- 3 min read
1. Tariffs = A Salary Cap Increase That Prices Out Players
Imagine the NHL raises the salary cap overnight. Suddenly, teams have to pay way more to keep their best players.
In real estate, tariffs act the same way.
Builders = NHL teams
Construction materials = Star players
New homebuyers = Fans trying to afford tickets
With tariffs making steel, lumber, and aluminum way more expensive, builders (teams) can’t afford as many materials (players), which makes new homes (team rosters) way more expensive for buyers (fans).
End result: Prices go up for everyone, and fewer homes get built—just like teams struggling to sign enough good players.
2. Uncertainty = A Key Player Injury Right Before Playoffs
Imagine it’s March and your team’s star goalie gets injured right before the playoffs. Suddenly, the whole team starts second-guessing itself. Do they still have a shot? Should they trade for a backup? Fans (buyers) panic, and ticket prices (home prices) fluctuate.
That’s what happens in a trade war.
People aren’t sure what’s coming next—Will prices rise? Will the economy slow?
Buyers and sellers hesitate to make big moves, just like teams holding off on trades.
Some panic-sell, while others sit on the bench, waiting to see what happens.
End result: Fewer home sales = A sluggish market, like a team struggling to find momentum after a major loss.
3. Job Losses = Losing a Top Line to Free Agency
Imagine your team loses its top scoring line in the offseason. Suddenly, goals are hard to come by, and the team is stuck playing defensive hockey, trying to survive.
That’s what happens when tariffs cause job losses in industries like construction, transportation, and manufacturing.
Less income = Less spending power = Fewer people can afford homes.
Mortgage defaults increase, just like a team struggling in the standings.
The market slows, just like a team that can’t score enough to win games.
End result: Less money flowing means fewer home sales and potentially lower home prices—just like a team that misses the playoffs after losing key players.
4. A Weak Canadian Dollar = Playing Every Game on the Road
If you’re an NHL team playing every game on the road, you spend more on travel, have less fan support, and face tougher odds.
That’s exactly what happens when trade wars weaken the Canadian dollar.
A weak Canadian dollar makes imported goods (like appliances, fixtures, and gas) more expensive, just like road games costing more in travel expenses.
Canadian homeowners pay more for everyday items, making it harder to save for homes or renovations.
End result: A weaker Canadian dollar = an uphill battle, making everything more expensive for homeowners, just like a team trying to win on the road.
5. Higher Interest Rates = More Penalties = Harder to Score
Imagine the refs start calling penalties on every shift, making it harder to score goals. That’s what happens when interest rates increase due to inflation caused by trade wars.
Higher mortgage rates mean buyers can afford less, just like a team struggling on the power play.
Monthly payments go up, meaning more homeowners feel the pressure, just like players trying to avoid costly penalties.
Some people get priced out of homeownership altogether, just like a team losing a playoff spot due to too many penalties.
End result: Borrowing money gets harder and more expensive, slowing down the real estate market, just like a game where one team is constantly shorthanded.
Summary
Tariffs raise construction costs = Like a salary cap increase, making everything more expensive.
Uncertainty causes hesitation = Like a star player injury shaking up the team’s confidence.
Job losses slow down the market = Like a team losing its best scorers.
A weak Candian dollar makes everything pricier = Like playing all games on the road.
Higher interest rates make homes less affordable = Like playing a game with non-stop penalties.
What Can Homeowners Do?
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