Toronto home sales drop 28.5% in February as trade uncertainty hits sentiment

By Fergal Smith

TORONTO (Reuters) - Greater Toronto Area home sales tumbled in February and home prices declined for a third straight month as an uncertain trade outlook weighed on the homebuyers' confidence, data from the Toronto Regional Real Estate Board (TRREB) showed on Wednesday.

Seasonally adjusted sales were down 28.5% on a month-over-month basis to 4,326 units after climbing 12.4% in January. Compared to February 2024, sales were down 27.4%.

"On top of lingering affordability concerns, homebuyers have arguably become less confident in the economy," Jason Mercer, chief market analyst at TRREB, said in a statement.

"Uncertainty about our trade relationship with the United States has likely prompted some households to take a wait-and-see attitude towards buying a home."

U.S. tariffs that took effect on Tuesday are threatening to derail Canada's fledgling economic recovery and will fuel a rise in consumer prices and unemployment, potentially triggering a recession.

The Greater Toronto Area includes Toronto, Canada's most populous city, and four surrounding regional municipalities.

Seasonally adjusted new listings fell 24.3% in February from January to 14,053 units. On a year-over-year basis, new listings were up 5.4%.

TRREB's home price index declined 1.5% month-over-month on a seasonally adjusted basis to C$1,063,300 ($740,562.75). Prices were down 1.8% from February of 2024.

($1 = 1.4358 Canadian dollars)

(Reporting by Fergal Smith; Editing by Christina Fincher)