Canadian home sales fall on uncertainty about US tariffs, says CREA

Rewrites with details from statement in paragraphs 1-3, 5, adds background paragraph 4

OTTAWA, Feb 18 (Reuters) - Canadian home sales weakened in the last week of January on uncertainty caused by the possibility of U.S. tariffs, the Canadian Real Estate Association said on Tuesday.

The industry body also said the number of newly listed homes jumped by 11% compared to December. Aside from the COVID-19 pandemic, this was the largest seasonally adjusted monthly increase in new supply on record going back to the late 1980s.

"The threat of a trade war with our largest trading partner is a major dark cloud on the horizon," CREA chair James Mabey said in a statement.

U.S. President Donald Trump is threatening to impose a tariff on all imports from Canada, which economists say would trigger a recession if maintained.

"The standout trends to begin the year were a big jump in new supply at an uncommon time of year, as well as a weakening in sales, which only showed up around the last week of January,” said CREA senior economist Shaun Cathcart.

"The timing of that change in demand leaves little doubt as to the cause – uncertainty around tariffs."

Sales fell 3.3% in January from December and rose 2.9% on an annual basis. CREA's Home Price Index was almost unchanged from December and showed little change from January 2024.