Canada Housing Research Brief

Canada’s housing market in a lull. As the central bank began its easing cycle in June 2024, lower interest rates were fuelling housing market momentum. These changing dynamics prompted buyers and sellers to reenter the market – listings and sales rose for three consecutive quarters to end last year – helping to stabilize the median price of a single-family home. With interest rates inching lower in the early parts of 2025, this trend was expected to continue to drive a housing market recovery over the course of this year. Recent trade uncertainties clouding Canada’s economic outlook, however, have led market participants to transition back into a wait-and-see approach. In February, national homes sales dropped 9.8 per cent – the second-consecutive monthly drop – due to tariffs threatening labour market conditions. Meanwhile, newly listed properties also fell 12.7 per cent monthly, as sellers are looking for more certainty surrounding buyer confidence. Consequently, the median price of a single-family home decreased 0.9 per cent, the largest monthly drop since late 2023.