Renewed Confidence Is Emerging in Canada’s Housing Market

Signs of renewed confidence in the Canadian housing market has started to emerge. Recent reports from local real estate boards have started to show that the drag on activity from global trade tensions is beginning to ease. Home resale activity increased in May across several cities that had experienced earlier slowdowns.

Markets like Toronto, Ottawa, Calgary, Edmonton, and Regina all saw partial rebounds in the number of transactions after notable declines earlier in the year.

Much of this recovery momentum appears to be linked to a recent easing in trade tensions. Since May, progress on tariff negotiations has helped calm concerns over broader economic impacts. The most recent news now suggests that there is a framework of a trade deal emerging.

So Is The Toronto Area Turning a Corner?

The Toronto housing market, which had been troubled this spring by uncertainty from the trade war, is now showing early signs of stabilization.

In May, home resales in the Toronto area rose 8.4% from April. According to TRREB, “On a seasonally adjusted basis, May home sales were up month-over-month compared to April 2025. This was the second monthly increase in a row. New listings were also up compared to April, but by a lesser monthly rate than sales, suggesting a slight tightening in market conditions.

This improvement may suggest that as economic fears ease, confidence is beginning to return to the market. With earlier interest rate cuts starting to take effect, the second half of the year could see more positive momentum in the housing market.

So overall, recent trends suggest that the housing market may be beginning to find its footing as economic pressures ease and confidence slowly rebuilds.

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