Home sales across Canada were down sharply during February, a decline that was attributed to apprehension over the tariff war with the Trump administration.
Sales activity recorded over Canadian MLS Systems plummeted by 9.8% from January to February, according to data from the Canadian Real Estate Association (CREA). This marked the lowest level for home sales since November 2023 and the largest month-over-month decline in activity since May 2022. Compared to February 2024, activity was down by 10.4%.
There were 146,250 properties listed for sale on all Canadian MLS Systems at the end of February, up 13.1% year-over-year but below the long-term average for that time of the year of around 174,000 listings. The number of newly listed properties dropped 12.7% month-over-month.
The National Composite MLS Home Price Index (HPI) declined by 0.8% from January to February, the largest month-over-month decrease since December 2023; the year-over-year decline was 1%. The national average sale price of $668,097 was down 3.3% from $690,903 in February 2024.
“The moment tariffs were first announced on January 20, a gap opened between home sales recorded this year and last. This trend continued to widen throughout February, leading to a significant, but hardly surprising, drop in monthly activity,” said Shaun Cathcart, CREA’s Senior Economist. “This is already being reflected in renewed price softness, particularly in Ontario’s Greater Golden Horseshoe region.”
