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Inflation Up, Sales Down
Inflation jumps, home sales drop, and new builds stall as tariffs shake up the market. Could rate cuts be on pause?
Today, we’re covering
📉 Home Sales Plunge as Trade War Fears Grow
💸 Inflation Just Jumped to 2.6%— Will Rate Cuts Pause?
🚧 Toronto and Vancouver See Huge Drop in New Housing Construction
🤷♂️ Young Homebuyers Stuck With Hard-to-Sell Condos
🤔 WTF of The Week
Read Time: 5 minutes
📉 Home Sales Plunge as Trade War Fears Grow
Home sales in Canada dropped 9.8% in February, the most significant decline since May 2022.
Sales were down 10.4% year-over-year, reaching their lowest level since November 2023.
New listings fell 12.7% in February, reversing the previous month’s unexpected surge.
The Home Price Index dropped 0.8% from January and 1% year-over-year.
The sales-to-new listings ratio rose slightly to 49.9%, up from 48.3% in January.
Why This Matters: Lower home prices may create opportunities to acquire properties at a discount. The slowdown may push developers to delay new projects, limiting future supply. Higher construction costs from tariffs could also put upward pressure on home prices. (source)