Canadian home sales in February dropped to the lowest level since November 2023 as the uncertainty of a trade war with the US kept buyers on the sidelines.
Transactions fell 9.8% from a month earlier, according to data released Monday by the Canadian Real Estate Association. The benchmark home price declined 0.8% to C$712,400 ($497,000), the largest monthly decrease since December 2023.
It’s been a volatile time for the Canadian housing market. Expectations for lower borrowing costs initially spurred more sellers to list properties, but new listings were down nearly 13% in February from the month before. Last week, the Bank of Canada cut interest rates to the lowest level since September 2022.
But a tariff battle with the US has created more uncertainty. Canada’s Prime Minister Mark Carney has vowed to keep tariffs in place as long as US President Donald Trump maintains the trade war between the two countries.
“The moment tariffs were first announced on Jan. 20, a gap opened between home sales recorded this year and last,” said Shaun Cathcart, CREA’s senior economist. “This trend continued to widen throughout February, leading to a significant, but hardly surprising, drop in monthly activity.”
Written by: Dina Katgara @Bloomberg
The post “Canada Home Sales Plunge as Buyers Pulled Back From Trade War Uncertainty” first appeared on Bloomberg