The entire House in Canada rose by 2.1 percent in the first quarter of 2025, a modest increase of the year compared to the previous year to $ 829,400, as was published by Royal Lepage and the market forecast on April 15.
The real estate franchiser said that the housing activities were so far softer in many markets this year than expected
–
A main shift compared to the end of 2024.
The economic uncertainty and the ongoing trade dispute with the United States have burdened consumer confidence on the market, said Phil Soper, Managing Director of Royal Lepage, in an interview.
“The typical spring market did not start as energetically as expected, and geopolitical uncertainty plays an important role,” he said.
The softer market activity was particularly pronounced in the country's most expensive markets in Ontario and British Columbia. Soper said softer sales reflect the caution of the consumers in the face of the economic headwind.
In the meantime, the province of Quebec, the prairies and a large part of the Atlantic Canada had a comparatively strong demand with a low supply, which led to price increase.
Pulled tariffs, together with the disturbing comments from US President Donald Trump, who questioned Canadian sovereignty, were sufficient to shake the public mood, the report says.
Even if these factors do not directly affect residential construction, they contribute to a precautionary climate that is heavily burdened with large consumer decisions at home and all over the world.
“Many (consumers) are not worried than the uncertainty for any other reason,” said Soper on Monday and added that this has an impact on important purchases such as the home building.
He also said that the perceived future affair concerns for some consumers are a main cause of the uncertainty, which are driving their decision to stay marginally marginally if they had found a new home.
In a survey commissioned by Royal Lepage, 49 percent of Canadians who wanted to buy a house this year say that the continued trade dispute has led to you have postponed your purchase plans for buying home, while 51 percent say that this is not the case.
In the survey carried out by Burson, 37 percent are concerned among those who have postponed their purchase plans.
In the meantime, 30 percent are concerned about making a large purchase at a time of political and economic uncertainty. Another 14 percent state that they endure because they expect real estate prices to drop due to the conflict.
The survey also states that 43 percent of Canadians are not confident in the country's economy today, while 49 percent say they are.
“The population seems to be divided in the middle (in relation to tariffs and in Washington and Washington, which affects what they will do with regard to living space,” said Soper.
He added that the Trump government had folded Canadians with aggressive rhetoric and criminal trade policy.
Soper notes that this has completely overshadowed the concerns about interest rates, which has been the focus of the market in recent years.
“It would not have been true six months ago. They only dominated our lives,” he said.
• e -mail: [email protected]
Place a bookmark on our website and support our journalism: Don't miss the business news you need to know. Add Financialpost.com to your bookmarks and register for our newsletter.