Homebuyers got cold feet this summer. Will the chill continue this fall?

Fears around a possible recession and widespread job loss dissuaded a lot of people from making home-buying decisions this summer. Will the chill continue into the fall?

While many parts of Canada sweltered under high temperatures this summer, the country’s housing market stayed chilly with homebuyers feeling spooked.

But experts say the summer of buyers getting cold feet might not be over just yet.

“It’s been anything but a traditional housing market,” said Penelope Graham, mortgage expert at Ratehub.ca.

The threat of tariffs imposed by U.S. President Donald Trump loomed large over Canadians.

“People were very anxious and nervous when these tariff threats were initially made,” Graham said.

Fears around a possible recession and widespread job loss “dissuaded a lot of people from making their home buying decision,” she added.

Before the tariff threats, it was expected that 2025 would see quite a hot housing market.

“In the latter months of 2024, it was anticipated that this would be quite a hot housing market. There was a lot of pent up demand. People had been waiting out very high interest rates and we were finally seeing those come down,” she said.