Canada's largest city cooled in August. Data released Thursday by the Toronto Regional Real Estate Board showed a 1.3% month over month drop in sales, breaking a streak that started in March. Prices nudged lower too, with the benchmark home price down 0.1% to C$931,200 ($673,000), halting gains that had built over the previous two months.
The softer read on housing landed as the US-Canada trade fight escalated. On Aug. 22, the United States levied fresh 50% duties on roughly $20 billion worth of Canadian goods. Canada said it will answer with tariffs on US products of roughly the same value beginning Sept. 8. While the Canadian economy had been recovering from US tariffs introduced last year, the latest measures threaten that progress.
Jason Mercer, the chief information officer for the real estate board, said, "Recent news on the overall economy and job creation has been positive," adding, "The main holdback for many households has been concerns around trade with the United States and the potential for higher inflation and borrowing costs in the future." On the supply side, new listings rose 5.2%, the first meaningful uptick since April.
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Housing is local, but trade tension is not. Tariffs can filter into prices and borrowing costs, which influences what buyers can afford and how sellers set expectations. If you are tracking the market, watch how these policy moves show up in listings, pricing, and time on market over the next few months.
