Canada Housing Research Brief

Housing conditions continue to soften. Canada’s housing market remained subdued in February, with sales declining 1.3 per cent monthly and activity sitting 8.1 per cent below year-ago levels. Adverse winter weather contributed to the slowdown, but underlying demand also remains soft amid affordability constraints and cautious buyer sentiment. New listings fell 3.9 per cent, yet supply remains elevated relative to recent years, keeping the market balanced but tilted in favour of buyers in major metros like Toronto and Vancouver. As a result, pricing continued to soften, with the median price of a single-family home down 4.4 per cent annually and 20 per cent below its February 2022 peak. This largely reflects persistent downward pressure from higher borrowing costs and subdued demand amid tariff uncertainties and the conflict in the Middle East.