Toronto Home Sales Plunge Amid Tariff Fears, Economic Uncertainty

Toronto’s housing market experienced a significant downturn in March, with home sales plummeting 23% year-over-year to just over 5,000 units, according to a recent report from the Toronto Regional Real Estate Board (TRREB), as per Bloomberg.

The sharp decline in transactions is attributed to growing economic anxiety surrounding tariff tensions between Canada and the United States, leading potential buyers to hesitate.

The cooling demand exerted downward pressure on prices, with the benchmark price of a home in Toronto falling 3.8% to C$1.07 million ($751,351).

The anxieties stem from concerns that Canada could be pushed into a recession as the US, its largest trading partner, has imposed tariffs on Canadian goods, prompting retaliatory measures from the Canadian government. US President Donald Trump’s threats of further tariffs, coupled with the uncertainty surrounding Canada’s upcoming federal election, are expected to prolong the economic unease.

Adding to the market’s complexities, a surge in new listings occurred in March, with a nearly 29% increase compared to the same period last year. This influx of over 17,000 units significantly outpaced sales, further contributing to the downward pressure on home prices. The increased inventory suggests that sellers are also feeling the pressure to offload properties amidst the prevailing economic headwinds