Real estate agents working on the front lines are witnessing the repercussions of Canada’s trade war with the U.S. unfold in real-time as potential homebuyers become increasingly hesitant to take action.
There has been a noticeable shift in consumer confidence, with many clients opting for a “wait and see” approach—and the data supports this trend.
Consumer confidence takes a hit as tariffs take effect
Home sales experienced a significant drop in February, according to CREA, declining by 10 percent month over month. This marked the lowest level for home sales since November 2023 and the largest month-over-month decline since May 2022.
Shaun Cathcart, CREA’s senior economist, notes, “The announcement of tariffs on January 20 created a gap between home sales this year and last. This gap continued to widen throughout February, resulting in a considerable decrease in monthly activity.”
Brian Speers, from Re/Max West Realty in the Greater Toronto Area, mentioned that falling interest rates initially attracted buyers to the market, but now clients are adopting a cautious approach, waiting to see how things unfold. Speers refers to this as the “Trump factor.”
The Trump factor
Real estate agents Dan Wojcik and Alex Elieff, from Century 21 in Barrie, Ont., have observed a significant slowdown in the market over the past two years. The start of 2025 brought optimism, but the “Trump effect” has impacted buyer confidence.
Buyers are hesitant to spend money amidst the uncertainty surrounding tariffs, choosing to wait until the situation becomes clearer.
Buyers adopt a wait-and-see approach
Elieff notes that although there is inventory available, the quality of the properties is not meeting buyers’ expectations. Wojcik emphasizes that negative news in the media causes the public to panic, leading to market stalls and pauses.
Different city, same story
In Oshawa, Ont., Realtor Jessie McLellan observes a similar trend, with sales not keeping up with the number of sellers entering the market. She sees potential opportunities for buyers due to lower interest rates.
East Coast braces for potential impact
St. John’s is expected to be heavily affected by a prolonged trade war, with developers becoming cautious about future residential projects. Despite the uncertainty, clients remain focused on finding properties amidst low inventory levels.
Calgary buyers and sellers tread carefully
In Calgary, buyers and sellers are proceeding with caution in light of potential tariff implications. Realtor Renata Reid notes that real estate activity is ongoing, but people are being more strategic in their decisions.
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