(Sept 3): Toronto home sales fell for the first time in six months as Canada’s continuing trade war with the US shakes the outlook for the nation’s housing market.

The number of homes that traded hands in Canada’s largest city decreased 1.3% in August, the first monthly decline since February, according to data released on Thursday by the Toronto Regional Real Estate Board. The benchmark price of a home dropped 0.1% to C$931,200 (RM2.71 million), ending the rebound in values seen the previous two months.

The dip in Toronto’s housing market came amid an escalation in the trade war between the US and Canada. The US implemented new 50% tariffs on about US$20 billion (RM80.8 billion) worth of Canadian products on Aug 22, and Canada promised retaliatory tariffs on US goods worth roughly the same, taking effect Sept 8.

Though the Canadian economy had been rebounding from the initial round of US tariffs delivered last year, the fresh levies threaten that momentum.

“Recent news on the overall economy and job creation has been positive,” Jason Mercer, the real estate board’s chief information officer, said in a statement. “The main holdback for many households has been concerns around trade with the United States and the potential for higher inflation and borrowing costs in the future.”

New listings hitting the market rose 5.2%, the first pickup in supply since April, the data show.

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