Canada Housing Market

Biggest Monthly Decline Since May 2022, Reports CREA

Canadian real estate is feeling the impact of economic uncertainty, as home sales and new listings sharply declined in February—the first full month of the ongoing trade conflict with the United States.

According to the Canadian Real Estate Association (CREA), national home sales dropped nearly 10% month-over-month, reaching their lowest point since November 2023. This marks the largest monthly decline since May 2022.

Widespread Declines Across Canada

The downturn was broad-based, with some of the steepest declines seen in Toronto and the surrounding Golden Horseshoe region. Sales fell in approximately three-quarters of all local markets, including nearly all major urban centers.

CREA’s senior economist, Shaun Cathcart, noted that home sales began diverging from last year’s trend as soon as tariffs were first announced on January 20. This gap widened throughout February, resulting in a sharp drop in market activity.

New Listings Drop Sharply

New property listings also tumbled 12.7% month-over-month, reversing January’s unexpected surge. As a result, the national sales-to-new-listings ratio ticked up slightly to 49.9% from 48.3%, keeping the market in balance.

At the end of February, there were 146,250 properties listed on all Canadian MLS Systems—a 13.1% increase from February 2024 but still below the long-term average for this time of year.

Buyer Confidence Wavers Amid Uncertainty

“The uncertainty of the last few weeks seems to be causing some buyers to hesitate before making major financial commitments,” said CREA chair James Mabey.

As economic and trade tensions persist, real estate professionals will be closely monitoring the market for further shifts in buyer behavior and housing supply trends.

References

Canadian home sales fall to lowest in more than year | Financial Post