Toronto real estate market struggles with economic uncertainty

The Toronto real estate market is experiencing a slowdown due to economic uncertainty and tariff threats from the United States. Leslie Preston, a senior economist, warns that confidence in the housing market is waning as long as these tariffs are looming. In early March, real estate agent Alex Beauregard noticed fewer bids coming in for a three-bedroom house in Christie Pits. The atmosphere changed dramatically after President Trump confirmed that tariffs on Canadian imports would go into effect. This announcement contributed to a sudden drop in buyer interest. The Canadian Real Estate Association reports a significant decline in home sales, with a 9.8 percent drop across the country in February. Listings also fell by 12.7 percent during the same period. The average home price in Canada decreased by 4.6 percent, creating a more favorable environment for buyers, especially in Ontario. Despite these challenges, some real estate agents like Patrick Rocca see signs of a potential recovery. He reports a recent increase in listings and advises sellers to act quickly, as market conditions may worsen later in the year. However, other agents are urging sellers to hold off on listing their properties until later months. The market's unpredictability and ongoing financial concerns, such as stock market instability, are making both buyers and sellers hesitant. In some areas, buyers are starting to take advantage of lower competition to negotiate better deals. But many potential sellers remain cautious, worried about the number of homes available. This cautiousness is causing a standstill in the market, leading to fewer transactions overall. Despite this, some agents feel a shift is coming as buyers and sellers adjust to the current landscape. They believe that properties will steadily sell to buyers who can see value in the market, even amid ongoing uncertainties.