National Bank Of Canada's (NBC) Daren King reports a 5.8% monthly drop in Canadian home sales in January, the third straight decline and broad-based across all provinces. He links the weakness to renewed trade uncertainty despite Bank of Canada rate cuts.

Broad-based sales drop and softer prices

"Home sales fell 5.8% from December to January, marking the third consecutive monthly decline and the largest drop since February 2025 when U.S. tariffs were announced."

"Although CREA attributes January's weakness to poor weather in Ontario and Quebec, this factor alone cannot explain the decline in residential market activity."

"In fact, the decrease in transactions was widespread across the country, with declines observed in all Canadian provinces for the first time since May 2021."

"The decline in January is likely attributable to renewed uncertainty on the trade front, despite support from the Bank of Canada's interest rate cuts."

"In the coming months, the residential market could regain momentum thanks to the combined effect of interest rate cuts and the recent improvement in the labour market, provided that a de-escalation of trade tensions with the United States."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)