A total of 5,011 homes were sold last month, down from 6,519 in March 2024, with a 2.4% seasonally adjusted drop from February. At the same time, the number of new listings surged. 17,263 new properties hit the market, marking a 28.6% increase year-over-year. That influx pushed total inventory up nearly 89% to 23,462 listings.
According to TRREB’s Chief Information Officer Jason Mercer, many would-be buyers are taking a “wait-and-see” approach. Uncertainty around global trade, the impact of tariffs, and the looming federal election has left many households cautious. “Homebuyers need to feel their employment situation is solid before committing to monthly mortgage payments over the long term,” Mercer said.
While Canada recently avoided widespread U.S. tariffs, major sectors like automotive, steel, and aluminum are still feeling the pressure. 25% tariffs on imported vehicles, including those made in Canada, and ongoing trade tensions are keeping some buyers on the sidelines.
Despite the slower sales, there’s some good news for buyers. With more inventory and lower interest rates, homeownership is becoming slightly more affordable.
TRREB President Elechia Barry-Sproule remains optimistic saying, “We expect further rate cuts this spring, and buyers will benefit from increased choice and greater negotiating power.”
The average selling price in March dipped 2.5% year-over-year to $1,093,254, while the composite benchmark price dropped 3.8%. The Bank of Canada has already cut its key interest rate seven times since June, now sitting at 2.75%.
Last fall, these cuts helped pull some buyers back into the market. Earlier this year, TRREB even predicted a 12% rise in sales for 2025, assuming rates remain low.
Stay tuned to see how the Spring market turns out. Feel free to contact me with any questions.