GTA home sales drop in March amid trade concerns

Home sales in the Greater Toronto Area (GTA) declined in March 2025, reflecting ongoing economic uncertainty and trade tensions. The Toronto Regional Real Estate Board (TRREB) reported a 2.4% seasonally adjusted decrease from February, totaling 4,221 units sold. Compared to March 2024, sales were down 23.1%, indicating a significant year-over-year drop.

The average home price in the GTA also fell for the third consecutive month, with TRREB's home price index decreasing 1.4% to C$1,050,200. Year-over-year, the price index declined by 3.8%. citeturn0news12 Despite the drop in sales and prices, new listings increased by 28.6% compared to the previous year, suggesting that more homeowners are putting their properties on the market.

TRREB's chief market analyst, Jason Mercer, attributed the slowdown to trade uncertainty and the upcoming Canadian federal election. He noted that many households are likely adopting a "wait-and-see approach" to home buying due to the economic implications of ongoing trade tensions and political developments.

The trade tensions have been exacerbated by U.S. President Donald Trump's decision to impose a 10% baseline tariff on all U.S. imports, potentially impacting Canada's economy. In response, newly appointed Canadian Prime Minister Mark Carney has called a snap election for April 28 to secure a strong mandate to address the escalating trade conflict.

The GTA housing market's performance is a critical indicator for the Canadian housing sector, as it includes Toronto and four surrounding regional municipalities. The recent declines in sales and prices, coupled with increased listings, suggest that both buyers and sellers are reacting to broader economic uncertainties.

Looking ahead, market analysts suggest that if trade uncertainties are resolved and borrowing costs continue to trend lower, stronger home sales activity could return in the second half of the year. However, for now, the market remains cautious amid the prevailing economic and political climate.