Canada Housing Research Brief

Residential markets continue to face risks. Canada’s housing market showed limited momentum in March, with home sales essentially flat month-over-month and remaining below seasonal norms. Weaker demand has been evident through the first quarter, with sales down year-over-year and price growth subdued as challenging conditions persist across most regions. While inventory levels remain near long-term averages, cautious buyer sentiment has reduced upward pressure on pricing. Importantly, this moderation reflects a more fragile economic backdrop, where rising global uncertainty — particularly from tensions in the Middle East — has added volatility to inflation and borrowing costs. While underlying fundamentals such as population growth and pent-up demand remain supportive, near-term risks continue to weigh on market confidence.