In its monthly report, released on Monday, the Canadian Real Estate Association (CREA) said home sales in the country dropped 9.8% in February from January and were down 10.4% from February 2024.
CREA added it was the largest month-over-month decline in sales activity since May 2022, and the lowest level of home sales since November 2023.
Both as a result of home buyers staying home in the first full month of the incursion of US tariffs on Canada, said CREA’s Senior Economist, Shaun Cathcart.
“The moment tariffs were first announced on January 20, a gap opened between home sales recorded this year and last,” said Cathcart. “This trend continued to widen throughout February, leading to a significant, but hardly surprising, drop in monthly activity.”
“This is already being reflected in renewed price softness, particularly in Ontario’s Greater Golden Horseshoe region.”
Almost three-quarters of markets, including almost all large markets, saw declining sales levels.
“The trend was most pronounced in the Greater Toronto Area and surrounding Great Golden Horseshoe regions,” says Cathcart.
After a surge in January, the number of newly listed properties fell back 12.7% month-over-month and the MLS Home Price Index declined 0.8% in February from January and was down 1% on a year-over-year basis, while the national average sales price fell 3.3% on a year-over-year basis.
“There were 4.7 months of inventory on a national basis at the end of February 2025, up sharply from 4.1 months at the end of January,” said Cathcart. “The long-term average is five months of inventory. Based on one standard deviation above and below that long-term average, a seller’s market would be below 3.6 months and a buyer’s market would be above 6.5 months.”
“With sales and new listings both down by similar magnitudes in February, the national sales-to-new listings ratio edged up slightly to 49.9% compared to 48.3% in January,” he added. The long-term average for the national sales-to-new listings ratio is 55%, with readings between 45% and 65% generally consistent with balanced housing market conditions.”
There were 146,250 properties listed for sale on all Canadian MLS Systems at the end of February 2025, up 13.1% from a year earlier but still below the long-term average for that time of the year of around 174,000 listings.
“The uncertainty of the last few weeks seems to be causing some buyers to think twice about big financial decisions right now,” said CREA Chair, James Mabey. “For others, a softer pricing environment and now lower interest rates will be a buying opportunity.”