Canada’s housing market showed contrasting trends in January, with home sales rising 2.9% year-over-year but dipping 3.3% from December, according to the Canadian Real Estate Association (CREA). The bigger story, however, was an 11% surge in new listings—the highest seasonally adjusted monthly increase on record outside pandemic-related fluctuations. Year-over-year, listings jumped 23%, with Greater Toronto seeing an almost 50% spike.

CREA’s Senior Economist Shaun Cathcart linked the market shift to uncertainty around U.S. tariffs, which dampened sales toward the end of January. With upcoming elections in Ontario and federally, political and economic unease has also played a role in sellers rushing to list properties.

Despite the influx, prices remained stable. The national average home price rose 1.1% year-over-year to $670,064, though it dipped 2% from December. The aggregate benchmark price stood at $720,500, up 0.2% annually but slightly lower month-over-month. Experts note that many new listings are from investors offloading properties rather than distressed sellers, which has kept downward price pressure in check.

At the same time, rental rates hit an 18-month low after a 4.4% annual decline, and a wave of condo completions expected this year could further shift market conditions. While active listings reached nearly 136,000—up 13% year-over-year—they remain below the historical average of 160,000 for this time of year.

With shifting market dynamics and economic uncertainty, industry watchers are keeping a close eye on whether increased inventory will lead to price corrections in the coming months.

Home sales dented by tariff worries in January as listings surge: CREA  Read More Here!