6 days Ago By Denise Paglinawan
Economic uncertainty and the trade dispute with the U.S. has weighed on consumer confidence in real estate You can save this article by registering for free here .
Or sign-in if you have an account. The aggregate home price in Canada rose 2.1 per cent in the first quarter of 2025, a modest year-over-year increase to $829,400, according to Royal LePage ‘s Q1 report and market forecast released April 15.
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Create an account or sign in to continue with your reading experience. Sign In or Create an Account The real estate franchiser said housing activity has so far been softer than expected this year in many markets — a major shift compared to the end of 2024. Economic uncertainty and the ongoing trade dispute with the United States has weighed on consumer confidence in the market, Royal LePage chief executive Phil Soper said in an interview.
“The typical spring market didn’t kick off as energetically as expected, and geopolitical uncertainty is playing a major role,” he said. Get the latest headlines, breaking news and columns. By signing up you consent to receive the above newsletter from Postmedia Network Inc.
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We encountered an issue signing you up. Please try again Interested in more newsletters? Browse here. Targeted tariffs, coupled with U.
S. President Donald Trump ‘s unsettling comments calling Canada’s sovereignty into question, have been enough to shake public sentiment, the report said. It said that even if these factors don’t directly impact housing, they contribute to a climate of caution that weighs heavily on large consumer decisions, at home and around the world.
“Many (consumers) are very concerned for no reason other than uncertainty,” Soper said on Monday, adding that this is having an impact on major purchases such as homebuying. He also said that perceived future affordability concerns is a major cause of uncertainty for some consumers and is driving their decision to stay on the sidelines when they would otherwise have been engaged in finding a new home. A survey commissioned by Royal LePage said 49 per cent of Canadians looking to purchase a home this year say the ongoing trade dispute has caused them to postpone their home buying plans, while 51 per cent say it has not.
The poll, conducted by Burson, said among those who have postponed their purchase plans, 37 per cent are concerned about a potential increase to the cost of living. Meanwhile, 30 per cent are concerned about making a big purchase at a time of political and economic uncertainty. Another 14 per cent say they are holding out because they expect home prices to decline as a result of the conflict.
The survey also said that 43 per cent of Canadians are not confident in the country’s economy today, while 49 per cent say they are. “The population seems to be divided right down the middle (with respect to) what goes on with tariffs and in Washington, impacting what they are going to do regarding housing,” said Soper. He added that the Trump administration has rattled Canadians with aggressive rhetoric and punitive trade policy.
Soper notes that this has completely overshadowed concerns about interest rates, which had been the focus in the market in the past years. “It would not have been true six months ago. Tariffs have they just dominated our lives,” he said.
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