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decline in Canadian interest in U.S. homes is evident, with Redfin data showing a 26.4% drop in searches for U.S. properties by Canadians in May compared to the same period last year. This decrease is more pronounced than the overall web traffic decline experienced during the housing market slowdown. The shift is notable given that Canadian buyers typically make up the largest share of foreign homebuyers in the U.S.

    The souring mood towards the U.S. due to tariffs and President Trump's rhetoric has likely contributed to this trend, as have economic pressures. The Canadian dollar's weakness against the U.S. dollar makes it more expensive for Canadians to buy U.S. products, while Canada faces tariffs of up to 25% on non-compliant products.

    Canada's sluggish housing market is another factor impacting interest in U.S. homes. Home prices are expected to fall by 8-10% by year-end due to distressed sales and a surplus of homes on the market. The Canadian dollar's weakness, poor affordability, weak confidence, and job losses have all contributed to this slowdown.

    The decline in Canada-based searches for U.S. homes is widespread across the country, with significant drops seen in major metros like Houston (down 55.2%), Philadelphia (53%), and Chicago (47%). Snowbird destinations like Miami and Orlando also saw a 30% year-over-year drop in Canadian interest. However, interest in these markets has cooled for all buyers due to rising insurance costs.

    Redfin Premier agent Marsha McMahon-Jones noted that it's been over a year since she last worked with a Canadian buyer, with many potential buyers opting to stay put in Canada until U.S.-Canada relations improve.