Toronto home-price declines accelerate amid trade war with US
The uncertainty over Canada’s relationship with the US has pushed Toronto homebuyers to the sidelines
[OTTAWA] The slump in Toronto home prices deepened in April as ongoing uncertainty over Canada’s trade war with the US causes listings to pile up on the market.
The benchmark price of a home in Canada’s largest city fell 5.4 per cent in April from a year earlier to C$1.01 million (S$942,964), according to non-seasonally adjusted data released on Tuesday by the Toronto Regional Real Estate Board. That’s a steeper decrease than the 3.8 per cent price decline in March.
After re-electing Prime Minister Mark Carney last month on a promise to stand up to US President Donald Trump, Canadians are now waiting to see how the trade war with the US plays out. Carney and Trump are expected to meet on Tuesday in Washington, after the US president repeated a desire to make Canada “the 51st state” in an interview that aired over the weekend.
The uncertainty over Canada’s relationship with its largest trading partner has pushed Toronto homebuyers to the sidelines. In April, sales plunged more than 23 per cent from the same month a year earlier. Meanwhile, listings are flooding the market, with more than 27,000 properties listed for sale in the city, a 54 per cent increase from a year earlier.
“Inventory levels remained elevated historically in April, pointing to substantial choice for households looking to purchase a home,” Jason Mercer, the Toronto real estate board’s chief information officer, said in a statement. “Buyers took advantage of this choice when negotiating purchase prices, which resulted in a lower average price across market segments compared to last year.” BLOOMBERG
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