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In February 2025, Canadian home sales experienced a significant decline, with transactions dropping 9.8% compared to January and 10.4% year-over-year. This marked the steepest monthly decrease since May 2022, bringing sales activity to levels not seen since November 2023. The downturn is largely attributed to escalating trade tensions and tariff concerns, which have led to economic uncertainty and dampened buyer confidence. Shaun Cathcart, Senior Economist at the Canadian Real Estate Association (CREA), noted that the announcement of tariffs in January created a widening gap in home sales compared to the previous year, resulting in renewed price softness, particularly in Ontario's Greater Golden Horseshoe region.

The decline in sales was widespread, affecting approximately three-quarters of local markets, including major urban areas. The Greater Toronto Area (GTA) was notably impacted, with home sales plummeting 28.5% month-over-month and 27.4% year-over-year in February. Jason Mercer, Chief Market Analyst at the Toronto Regional Real Estate Board (TRREB), attributed this sharp decline to affordability concerns and diminished economic confidence among potential homebuyers, exacerbated by uncertainties surrounding trade relations with the United States. ​

In response to the sluggish sales, new listings also saw a significant decrease, falling 12.7% month-over-month in February, following an unexpected 11% surge in January. Nationally, 146,250 properties were listed for sale, reflecting a 13.1% increase from the previous year but still below the long-term average of 174,000 for this time of year. The national sales-to-new listings ratio edged up slightly to 49.9% from 48.3% in January. Additionally, the National Composite MLS Home Price Index (HPI) recorded a 0.8% monthly decline—the most significant drop since December 2023—driven by price softening in Ontario's Greater Golden Horseshoe region.

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