By Ian Bickis
Residence gross sales in February had been down 10.4% in contrast with the identical month final yr, whereas on a seasonally adjusted foundation, house gross sales had been down 9.8% in contrast with January.
“The second tariffs had been first introduced on Jan. 20, a spot opened between house gross sales recorded this yr and final,” mentioned Shaun Cathcart, senior economist at CREA.
“This pattern continued to widen all through February, resulting in a big, however hardly stunning, drop in month-to-month exercise,” he mentioned in an announcement.
CREA says it was the bottom degree for house gross sales since November 2023 and the most important month-over-month drop since Could 2022, which is when the Financial institution of Canada began a collection of aggressive charge hikes to struggle inflation.
The pullback was not a shock given the political uncertainty introduced on by the Donald Trump presidency, mentioned Phil Soper, president of Royal LePage.
He mentioned the corporate may see the downturn in gross sales occurring day-to-day, and that it actually took off in February as soon as views totally shifted.
“Within the first few days of the Trump presidency, I believe there was nonetheless some disbelief that the sorts of bombastic statements he was making would truly translate into aggressive coverage towards a pal and neighbour,” mentioned Soper.
“By February, folks had settled right into a apprehensive acceptance to the truth that the commerce battle was actuality, and we noticed volumes begin to decline.”
The month did additionally see heavy winter storms hit the Toronto space and different components of southern Ontario, weighing on gross sales, however it could have had solely a minor impact on the month, mentioned Soper.
“Folks will keep away from going out and taking a look at house for every week, but when they determined that that’s the time that their household wants to maneuver, they transfer, they get on the market and so they do the transaction.”
As an alternative, it’s largely uncertainty that’s holding again gross sales, whilst measures like financial savings and employment stay pretty sturdy, he mentioned.
“It’s confidence. Folks’s confidence to make main choices has been shaken by the Trump White Home.”
The pullback in gross sales was most pronounced within the Larger Toronto Space, but it surely was pretty broad-based with declines in three quarters of native markets and virtually all massive markets, mentioned CREA.
The affiliation additionally says new listings fell 12.7% month-over-month, following a shock improve in January.
Whole listings had been up 13.1% from final yr at round 146,000, however nonetheless under the long-term common for the time of yr of 174,000 listings.
The precise nationwide common sale value of a house offered in February was $668,097, down 3.3% from a yr in the past. Seasonally adjusted, the common value was down 4.6% from January.
CREA’s own residence value index, which goals to signify the sale of typical houses, fell 0.8% from January and was down 1% from final yr.
As with listings, value softness was most notable within the Toronto area, the place the index fell 1.5% from final month.
The retreat on costs, mixed with one other rate of interest drop from the Financial institution of Canada final week, helps create shopping for alternatives for some, the affiliation mentioned.
TD senior economist Leslie Preston mentioned in a observe that the speed lower ought to present some help for housing on the margins, however it would take greater than that to spur a turnaround.
“So long as the U.S. retains the specter of punitive tariffs alive, confidence within the housing market is more likely to be beneath a cloud.”
This report by The Canadian Press was first revealed March 17, 2025.
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Canadian house gross sales Canadian actual property affiliation crea house value knowledge house costs house gross sales Ian Bickis new listings Phil Soper shaun cathcart tariffs The Canadian Press
Final modified: March 17, 2025