Spring Housing Market Cools as Trade Tensions Rise

Hopes for a busy spring real estate season are being tempered as growing trade tensions between Canada and the U.S. impact buyer confidence—including in British Columbia.

According to the Canadian Real Estate Association (CREA), home sales dropped 9.8% from January and 10.4% year-over-year in February. Around three-quarters of Canadian markets saw a slowdown, with the most significant drops in places like Ontario’s Golden Horseshoe and several key B.C. regions.

CREA links the decline to economic uncertainty tied to U.S. tariffs and broader global concerns, which have caused some buyers to take a more cautious approach.

“The moment tariffs were first announced on January 20, a gap opened between home sales recorded this year and last. This trend continued to widen throughout February,” said CREA’s Senior Economist, Shaun Cathcart.

In B.C., markets like Vancouver, Victoria, and Kamloops have all shown signs of adjusting. Kamloops, in particular, remains resilient, with steady home values and strong local interest from buyers looking to upsize, downsize, or relocate within the region. The city’s relative affordability and lifestyle appeal continue to draw attention, even amid broader national trends.

New listings across Canada dropped 12.7% from January, reversing the surprise gains from the month prior.

Despite slower sales, prices remain relatively stable. CREA’s Home Price Index dipped 0.8% month-over-month, and 1.0% year-over-year, while the national average sale price dropped 3.3% year-over-year to $668,000.

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