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Canadian Home Sales Plunge Amid U.S. Tariff Fears

3/18/2025

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Summary

Canada Home Sales Plummet

In February 2025, Canadian home sales plummeted by 9.8%, hitting their lowest point since November 2023. This downturn, largely fueled by U.S. tariff uncertainties, impacted nearly 75% of local markets, especially in Ontario's Greater Golden Horseshoe. New listings also dropped by 12.7%, with the national average sale price falling 3.3% compared to last year.

Summary

Canada Housing Decline

In February 2025, Canada faced a significant 4% drop in housing starts, with 229,030 units initiated. The multi-family sector suffered the most, plummeting by 6%. Larger urban centers saw a staggering 17% decline year-over-year. Analysts caution that persistent uncertainties and escalating construction costs could stifle residential investment and hinder GDP growth ahead.

History

Historical Context

In February 2025, Canada’s housing market faced a downturn reminiscent of the 2008 financial crisis. Back then, U.S. housing market instability triggered global repercussions. Today, tariff uncertainties echo that past turmoil, impacting Canadian home sales and construction, revealing ongoing vulnerabilities in interconnected economies.

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Canada Home Sales Plummet

In February 2025, Canadian home sales plummeted by 9.8%, hitting their lowest point since November 2023. This downturn, largely fueled by U.S. tariff uncertainties, impacted nearly 75% of local markets, especially in Ontario's Greater Golden Horseshoe. New listings also dropped by 12.7%, with the national average sale price falling 3.3% compared to last year.

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