Trade Tensions Weigh on Ontario's Sluggish Resale Housing Market

The Ontario resale housing market is facing potential headwinds due to renewed trade tensions between Canada and the U.S.

Last month, home sales in Ontario declined by 1.3% compared to July 2025, with year-to-date sales also lagging behind 2025 levels according to the Canadian Real Estate Association (CREA).

However, industry watchers say that while this latest round of tariffs may impact consumer confidence and slow down home sales, it's unlikely to completely derail the ongoing recovery.

Robert Hogue, assistant chief economist at the Royal Bank of Canada, stated that 'this latest round of the trade war with the U.S. puts at risk the confidence gains we've seen in recent months.'

Hogue believes that despite this uncertainty, the Canadian economy has shown signs of resiliency, with a jobless rate of 6.4% in July and steady interest rates after peaking in 2024.

Mike Moffatt, founding director of the Place Centre economic think-tank at the University of Ottawa, noted that 'if these kinds of tariffs stick around for a while, and we start seeing job layoffs, particularly in the manufacturing sector, that can certainly slow things down.'