Toronto-area real estate sales the worst on record for March as buyers ride out Trump uncertainty

Toronto-area home sales hit a record low in March, with buyers holding back amid economic uncertainty fueled by U.S. trade policies and upcoming elections. According to the Toronto Regional Real Estate Board (TRREB), sales dropped 2.4% from February to 4,221 units, following a steep 28.5% decline the previous month. Year-over-year, sales were down 23.1%, and the average home price fell 3.8% to C$1,050,200.

The downturn is largely attributed to trade tensions sparked by U.S. President Donald Trump's recent tariffs on Canadian imports. In response, Prime Minister Mark Carney has called a snap election for April 28, seeking a mandate to address the escalating trade conflict. This political uncertainty has made potential buyers hesitant, opting to wait for more stability before making significant financial commitments.

Affordability remains a significant concern. Despite a 9.6% increase in new listings from February, many households find current mortgage rates challenging. TRREB President Elechia Barry-Sproule noted that while buyers have more options, the cost of borrowing continues to deter many from entering the market.

The impact is evident across all housing types. Detached homes saw a 31.1% drop in sales, townhouses fell by 30.6%, semi-detached homes by 22.3%, and condos by 22%. The surge in listings, up 28.6% year-over-year, has shifted the market in favor of buyers, but the prevailing economic uncertainty keeps many on the sidelines.

Real estate professionals observe that clients are prioritizing financial stability over homeownership. Mortgage broker Tracy Valko reported that several clients have postponed their buying plans, preferring to maintain liquidity during these uncertain times.

Looking ahead, experts suggest that if trade tensions ease and borrowing costs decrease, the housing market could rebound in the latter half of the year. However, until there's more clarity on economic policies and interest rates, many buyers are likely to remain cautious.