Is Canada’s spring housing market ‘dead on arrival’ amid tariffs?

Home sales in Canada declined 9.8 per cent annually in February, data from the Canadian Real Estate Association showed. Is there a silver lining for buyers and sellers?

Spring is typically the time of year when activity in Canada’s housing market heats up, but this year’s spring housing market appears to be dampened by the threat of U.S. President Donald Trump’s tariffs.

But is there a silver lining for any prospective buyers?

Home sales in Canada declined 9.8 per cent annually in February, data from the Canadian Real Estate Association (CREA) showed on Monday, with the annual price of a home in Canada dropping 3.3 per cent.

The activity has slowed significantly, even compared with January, with the number of newly listed properties in Canada falling by 12.7 per cent.

“Before tariffs really entered the narrative, it was widely expected that this was going to be quite a hot spring housing market,” Penelope Graham, mortgage expert at Ratehub.ca, said.

The Canadian economy entered 2025 on fairly strong footing, with inflation remaining close to the Bank of Canada’s two per cent target rate since last summer and the central bank delivering six straight interest rate cuts, making it easier for Canadians to borrow money.

According to CREA, this drop in the market coincided with Trump’s inauguration as U.S. president.

“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,” Shaun Cathcart, CREA’s senior economist, said in a statement.