According to the Canadian Real Estate Association (CREA), uncertainty about tariffs and a potential trade war with the United States slowed Canadian home sales at the end of January.
According to reports, the national sales declined 3.3 per cent from December, while newly listed properties jumped 11 per cent, marking the largest seasonally adjusted increase in new supply since the late 1980s, aside from swings during the COVID-19 pandemic. CREA experts pointed to the timing of the demand drop, which correlates with trade uncertainties.
They noted that the increased supply created softer pricing conditions, particularly in British Columbia and Ontario, where markets had tightened since last fall.
The national average home price increased 1.1 per cent year over year to $670,064 in January. However, the document noted that the National Composite MLS Home Price Index has "barely budged” over the past year due to “ongoing softness” in Ontario and British Columbia.
Rising prices in Quebec, the Prairies, and the East Coast helped offset declines in those two provinces. British Columbia and Ontario remained Canada’s most expensive housing markets, but prices dropped 3.8 per cent and 6.2 per cent, respectively, from December to January.
Meanwhile, Quebec saw prices climb 7.3 per cent. The Prairie provinces recorded smaller price increases, with Alberta up 0.4 per cent, Saskatchewan up 0.7 per cent, and Manitoba up 0.3 per cent.
Newfoundland and Labrador led the Atlantic provinces with a 5.8 per cent increase in home prices in January.
The increase in new listings pushed the national sales-to-new listings ratio down to 49.3 per cent. CREA stated that this places it on the lower end of the 45 per cent to 65 per cent range, which is considered balanced.
The number of properties listed for sale across Canadian MLS systems increased 12.7 per cent year over year, reaching nearly 136,000 in January. However, CREA noted that this remains below the long-term average of 160,000 for this time of year.
