Toronto-area home sales plummeted in February in comparison to the same period last year and new listings jumped, providing substantial negotiating power for homebuyers. On top of lingering affordability concerns, homebuyers have arguably become less confident in the economy. Uncertainty about our trade relationship with the United States has likely prompted some households to take a wait-and-see attitude toward buying a home. And that was before U.S. President Donald Trump slapped 25 per cent tariffs on most Canadian goods on March 4. Many households are eager to purchase a home, but current mortgage rates make it difficult for the average household income to comfortably cover monthly payments on a typical property, resulting in potential buyers continuing to wait on the sidelines. Prices for housing remained relatively flat in February with the average sales price declining 2.2 per cent from February last year to 1.08 million. Numerous factors are behind the surge in listings, such as low sales resulting in homes staying on the market longer, over-leveraged investors off-loading their properties, and the increase in forced sales for homeowners struggling to pay their mortgage. Most economists are now forecasting the Bank of Canada to cut its key rate on March 12 as tariffs risk pushing Canada into a moderate recession. If trade uncertainty is alleviated and borrowing costs continue to trend lower, we could see much stronger home sales activity in the second half of this year.