Toronto home sales fall the most in 11 months as economic uncertainty weighs

Greater Toronto Area home sales fell sharply in January and prices declined as economic uncertainty kept homebuyers on the sidelines, Toronto Regional Real Estate Board data showed on Wednesday.

Seasonally adjusted sales dropped 9.9% last month from December to 4,795 units, adding to declines over the previous three months. It was the biggest drop since February last year and the lowest level for sales since May.

The board’s home price index was down 1.7% month-over-month, after seasonal adjustment, at C$941,200 ($689,574), marking the eighth straight month of declines.

The Greater Toronto Area includes Toronto, Canada’s most populous city, and four surrounding regional municipalities.

“The housing market reflects the tension many households are feeling as we look ahead to 2026,” the board’s president, Daniel Steinfeld, said in a statement. “Affordability has improved, but uncertainty continues to weigh on long term decisions like homeownership.”

Canada’s economy has been badly hurt by the U.S.-led trade war. The United States-Mexico-Canada Agreement, which has shielded much of Canada’s exports from U.S. tariffs, is set for review by a July 1 deadline.

On a year-over-year basis, the price index fell 8% in January, while sales were down 19.3% and new listings declined 13.3%.

Elevated supply levels are expected to keep price growth in check through 2026, while overall home sales activity is forecast to remain within a similar range compared to the last three years, TRREB said in a market outlook report.