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Home sales in the Greater Toronto Area declined by 2.4% in March, following a steep 28.5% drop in February, as buyers remained cautious amid trade tensions and political uncertainty. TRREB's home price index fell 1.4% to CAD 1,050,200, marking the third consecutive monthly decline. New listings rose by 9.6% month-over-month and 28.6% year-over-year, but demand remained weak. Analysts attribute the slowdown to U.S. trade policy shifts and Canada's upcoming federal election on April 28. With buyers taking a wait-and-see approach, GTA's housing market is likely to remain subdued until greater economic and political clarity is achieved in the coming months.
In March, home sales in the Greater Toronto Area (GTA) continued to decline, adding to the steep drop seen in February. According to data released by the Toronto Regional Real Estate Board (TRREB) on Thursday, the housing market remained under pressure due to trade uncertainty and political developments, leading many potential buyers to delay their purchases. Advertisement
Seasonally adjusted home sales in the GTA were recorded at 4,221 units in March, reflecting a 2.4% drop compared to February. This followed a significant 28.5% fall in February, signalling a continued slowdown in market activity. At the same time, TRREB's home price index declined for the third consecutive month, falling by 1.4% to CAD 1,050,200 (USD 738,225.78).
Jason Mercer, TRREB's chief market analyst, explained the possible reasons behind the cooling housing market. He said that "given the current trade uncertainty and the upcoming federal election, many households are likely taking a wait-and-see approach to home buying." His remarks suggested that both economic and political instability had led to hesitancy among buyers.
Uncertainty around international trade has deepened in recent days. On Wednesday, U.S. President Donald Trump announced plans to impose a 10% baseline tariff on all imports to the United States. This move is expected to heighten trade tensions and could have wide-reaching effects on Canada's economy, which is closely tied to U.S. trade.
In addition, the political environment within Canada has added to the cautious mood. Prime Minister Mark Carney recently called a snap federal election, set for April 28. He stated that a strong mandate was needed to effectively address the potential economic risks posed by escalating trade tensions.
The GTA, which includes Toronto and four neighbouring regional municipalities, is one of Canada's largest and most dynamic housing markets. However, March's data points to a cooling trend across the region.
Despite the decline in sales and prices, a rise in new property listings was reported. Seasonally adjusted new listings increased by 9.6% in March, reaching 15,403 units. This followed a sharp 24.3% fall in listings in February. On a year-over-year basis, sales dropped by 23.1%, while the home price index declined by 3.8%. In contrast, new listings rose by 28.6% compared to the same period last year.
The increased number of listings, combined with weaker demand, may continue to put downward pressure on home prices in the coming months. Buyers, concerned about the broader economic outlook and waiting for greater clarity following the election, are likely to remain cautious.
As April progresses, both the political landscape and global trade developments will be closely watched by buyers, sellers, and investors alike. Market experts believe that until more stability is achieved, GTA's housing market may continue to experience muted activity.
Although the recent figures may appear discouraging, they reflect a broader trend of cautious consumer behaviour amid uncertainty. Once the political and economic climate becomes clearer, the market may see a return in confidence. For now, however, the GTA housing sector remains in a holding pattern, shaped largely by forces beyond the local property market itself.
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