New data from the Canadian Real Estate Association suggests a potential decline in sales, as both buyers and sellers take a more measured approach, reassessing their real estate plans.
“It’s not structural; it has nothing to do with household finances or savings. People are uncomfortable, and when you’re uncomfortable, it’s harder to make a big decision,” said Phil Soper, CEO of Royal LePage Canada.
This sentiment is reflected in a 9.8% month-over-month drop in national home sales, along with a 12.7% decline in newly listed properties from January to February.
“Southern Ontario is, in many ways, the economic engine of Canada, and as an exporting nation, Canada is particularly sensitive to trade uncertainties. That’s why the GTA is experiencing a sharper dip in consumer confidence compared to other regions,” Soper explained.
He also highlighted Windsor, central Quebec, and Alberta as key markets to watch as the trade situation unfolds.
While downtown Toronto may not currently favor sellers, real estate agents suggest that lower interest rates and an oversupply of condos could create opportunities for buyers willing to take advantage of the market.
“I think this is a great time for buyers. Many of the deals we’re closing now allow for home inspections and financing conditions—things that were difficult to negotiate just two or three years ago,” said Francesco Porretta, a real estate agent with Forest Hill Real Estate Brokerage.
As for what lies ahead, experts agree that it remains a wait-and-see scenario as Canada braces for the potential impact of tariffs and trade tensions on the real estate market.