TORONTO (Reuters)

Canadian home sales dropped in February by the most in nearly three years as an uncertain outlook for the economy due to the onset of a trade war kept buyers on the sidelines, data from the Canadian Real Estate Association showed on Monday.

Sales fell 9.8% in February from January, the biggest decline since May 2022, and were down 10.4% on an annual basis.

“The uncertainty of the last few weeks seems to be causing some buyers to think twice about big financial decisions right now,” James Mabey, CREA Chair, said in a statement.

U.S. President Donald Trump’s tariff hikes will drag down growth in Canada, Mexico and the United States while driving up inflation, the Organisation for Economic Co-operation and Development forecast on Monday.

The industry group’s Home Price Index edged down 0.8% on the month and was down 1% annually, while the national average selling price was down 3.3% on the year.

Separate data from the Canadian Mortgage and Housing Corporation, the national housing agency, showed that housing starts fell 4% in February compared with the previous month to a seasonally adjusted annualized rate of 229,030 units.

Economists had expected starts to rise to 250,000.

(Reporting by Fergal Smith; Editing by Mark Porter)

Canadian home sales post biggest decline in nearly three years
By Fergal Smith

TORONTO (Reuters)

Canadian home sales dropped in February by the most in nearly three years as an uncertain outlook for the economy due to the onset of a trade war kept buyers on the sidelines, data from the Canadian Real Estate Association showed on Monday.

Sales fell 9.8% in February from January, the biggest decline since May 2022, and were down 10.4% on an annual basis.

“The uncertainty of the last few weeks seems to be causing some buyers to think twice about big financial decisions right now,” James Mabey, CREA Chair, said in a statement.

U.S. President Donald Trump’s tariff hikes will drag down growth in Canada, Mexico and the United States while driving up inflation, the Organisation for Economic Co-operation and Development forecast on Monday.

The industry group’s Home Price Index edged down 0.8% on the month and was down 1% annually, while the national average selling price was down 3.3% on the year.

Separate data from the Canadian Mortgage and Housing Corporation, the national housing agency, showed that housing starts fell 4% in February compared with the previous month to a seasonally adjusted annualized rate of 229,030 units.

Economists had expected starts to rise to 250,000.