T
he Canadian housing market appears to be stabilizing, according to the latest data from the Canadian Real Estate Association (CREA). After a decline in sales since January, April saw actual home sales fall by 9.8% compared to the same period last year. However, on a seasonally-adjusted basis, national home sales remained virtually unchanged from March.

    This suggests that the market may be pausing rather than continuing its downward trend. Senior economist Shaun Cathcart notes that sales have been falling rapidly since January 20th, when tariffs were first announced, but April's data shows a "pause" rather than a continued decline.

    The number of new properties added to the market fell by 1% in April compared to March, and the MLS Home Price Index (the average listing price) dropped 1.2%. Compared to 2024, listing prices fell an average of 3.6% across Canada, while actual sale prices were down 3.9%.

    Cathcart attributes this stabilization to sellers being willing to negotiate prices, but not to the point where prices are in free fall. The outlook for the trade war and interest rates remains uncertain, with many buyers and sellers waiting on the sidelines to see how tariffs will develop.

    The data suggests that the real estate market may have already seen the worst of the impacts from the trade war. Cathcart notes that if massive layoffs occur, it could lead to a surge in sales as people try to get rid of their assets quickly, but this risk has not yet materialized.