Canadian home sales experienced a significant drop in February, registering the largest decline in nearly three years, attributed to economic uncertainty caused by impending trade conflicts. Data from the Canadian Real Estate Association revealed a 9.8% decrease compared to January and a 10.4% drop year-over-year.

CREA Chair, James Mabey, noted, "The uncertainty of the last few weeks seems to be causing some buyers to think twice about big financial decisions right now."

Furthermore, the Organisation for Economic Co-operation and Development predicted that U.S. trade policies would stifle growth, increase inflation, and impact Canadian economic prospects negatively.

The Home Price Index declined by 0.8% monthly and 1% annually, with the national average selling price down by 3.3% from the previous year.

In parallel, the Canadian Mortgage and Housing Corporation reported a 4% decrease in housing starts in February, settling at a seasonally adjusted annual rate of 229,030 units, falling short of the anticipated 250,000 starts.