MNI:Canada Dec Home Sales -2.7%, 2025 Sales -1.9% On Trade War

Canadian home resales fell for the third time in four months in December, ending a year where sales declined in the face of a U.S. trade war that hurt consumer confidence.

Sales were down 2.7% on the month and 1.9% on the year the Canadian Real Estate Association said from Ottawa Thursday. "The year was characterized by a tariff-induced flight of buyers back to the sidelines in the first quarter, followed by a decent sales rally mid-year, and a bit of a stall to finish off 2025" according to the report.

The group's price index was down 0.3% on the month and 4% year-over-year to settle at CAD673,335, weakness led by condos and townhomes. Housing affordability remains a major challenge for young buyers in a year where youth unemployment climbed.

The Bank of Canada cut its policy overnight rate four times last year to 2.25%, but that was blunted in the mortgage market by upward pressure on longer-term bond yields. “Interest rates at this point are about as good as they are going to get,” said CREA Chair Valerie Paquin. “Barring any further major uncertainty-causing events, that means we should see a more active market this year.”