Toronto Home Sales Fall as Trade War Spooks Buyers

Home sales in Toronto and its surrounding areas fell in August, ending a five-month rebound. The Toronto Regional Real Estate Board reported 5,484 property transactions, a 1.3 per cent decrease from July and 28 per cent below the 10-year average for August. This decline marks the first monthly drop since February.

Market participants link the slowdown to the collapse of trade negotiations between Canada and the United States. Potential buyers expressed concerns that an intensifying trade war could trigger higher inflation and increased borrowing costs, creating a climate of economic uncertainty.

The region's home price index fell 0.1 per cent monthly to $931,200, a 4.5 per cent decline year-over-year. Condominiums saw the steepest annual value loss at 7.1 per cent, while the York Region experienced the most significant year-over-year price drop at 6.2 per cent.