Has tariffs killed Canada’s spring housing market?

The spring housing market in Canada is being negatively impacted by President Donald Trump’s tariffs, leading to a decline in home sales and prices. The slowdown in the market has been significant, with newly listed properties decreasing by 12.7 percent. The Canadian economy had entered 2025 on a strong footing, but the threat of tariffs has created uncertainty in the housing market. Experts are predicting a challenging spring housing market due to fears of a recession and mass layoffs, deterring new buyers from entering the market.

Despite the current challenges, there is still demand for home ownership in Canada, with many people viewing homes as a significant investment for the future. Sellers are waiting for market conditions to improve, but experts believe that the usual spring market with above-asking prices and multiple offers may not materialize this year. Uncertainty surrounding tariffs and the economy has led to a lack of movement in the market, impacting both buyers and sellers who are hesitant to make significant financial decisions at this time.

For buyers who are financially stable, this could be a good time to enter the market as inventory levels are up and there may be opportunities to negotiate favorable terms. The absence of bidding wars in some markets can result in better prices for homebuyers. Additionally, borrowing costs are currently low, with variable mortgage rates as low as 3.95 percent. Those with mortgage renewals coming up can benefit from lower fixed mortgage rates as well. Buyers looking to upsize or first-time buyers considering condos may find good options in the current market conditions.

Experts advise buyers to take advantage of the slow market and make decisive purchasing decisions that could result in long-term gains. While uncertainty remains about how the market will perform in the coming months, real estate professionals are optimistic that the market will rebound eventually. By being prepared to weather the current economic challenges and take calculated risks, buyers may be able to secure good deals on properties that could increase in value over time. While the housing market may not return to previous peak levels, there is still potential for growth and profitability for those willing to navigate the current landscape.