Canada Housing Faces Trade Turmoil

The Canadian housing market has entered a softer phase, with activity down about 7% year-over-year and national sales slipping by less than 1% month-over-month. Buyers are feeling the impact of ongoing trade tensions, fluctuating oil prices, and persistent inflation concerns. Rising Canadian bond yields have also pushed fixed mortgage rates higher, adding another layer to decision-making for buyers and sellers alike. Despite these challenges, some industry voices remain optimistic, anticipating a busier late Q3 and Q4. The Bank of Canada recently held its policy rate steady, with inflation hovering near 3% for a second straight month. Looking ahead, some economists foresee either no rate changes or a modest hike through the end of 2026, with the potential for rate cuts in 2027 if conditions improve. Many see a new US trade deal as the key to a stronger rebound. In this dynamic market, it’s wise to keep an eye on the next 6 to 12 months and be ready to act when the right opportunity appears. My experience guiding clients through neighbourhoods from North Vancouver to Burnaby and Downtown Vancouver reminds me how important it is to stay informed and prepared as the market evolves.