The Canadian housing market experienced a significant shift in January, with new property listings soaring while home sales took a hit. According to the Canadian Real Estate Association (CREA), uncertainty around U.S. tariffs and a potential trade war played a major role in softening sales activity.
Record-Breaking Increase in Listings
January saw an 11% month-over-month increase in newly listed properties—the largest seasonally adjusted jump in new supply on record dating back to the late 1980s. Typically, winter is a slower season for real estate, making this surge in listings even more unusual.
Meanwhile, national home sales declined by 3.3% compared to December. CREA’s senior economist, Shaun Cathcart, attributed this drop to uncertainty surrounding tariffs, stating, “The timing of that change in demand leaves little doubt as to the cause—uncertainty around tariffs.” This combination of increasing supply and softer demand has shifted market conditions, especially in British Columbia and Ontario.
Home Prices Hold Steady Despite Market Changes
Despite the shifts in supply and demand, home prices remained relatively stable. The non-seasonally adjusted national average home price rose 1.1% year-over-year to $670,064 in January. However, the National Composite MLS Home Price Index has remained largely unchanged over the past year due to ongoing market softness in Ontario and B.C.
While these two provinces continue to be the most expensive places to buy a home, their average residential prices declined in January. B.C. saw a 3.8% drop, while Ontario experienced a more significant 6.2% decrease. On the other hand, other regions showed positive price growth, with Quebec leading at a 7.3% increase. The Prairies saw modest gains, including 0.4% in Alberta, 0.7% in Saskatchewan, and 0.3% in Manitoba. The Atlantic provinces also saw some movement, with Newfoundland experiencing a notable 5.8% price increase.
What This Means for Buyers and Sellers
With a surge in new listings and a slowdown in sales, buyers may find more opportunities and negotiating power in the coming months. On the flip side, sellers may need to adjust expectations, particularly in softer markets like B.C. and Ontario.
As tariff uncertainties continue to loom, it remains to be seen how the market will react in the longer term. For now, those looking to buy or sell in 2025 should stay informed and work with real estate professionals to navigate the shifting landscape.
