Once-Hottest Housing Market Goes Ice Cold at Bad Time for Canada

For the better part of two decades, any time the Canadian economy hit a snag — the global financial crisis, the Covid-19 pandemic — its red-hot housing market would power it through.

But as Canada grapples with US President Donald Trump’s trade war, the country may not be able to rely on housing this time.

Would-be buyers are staying away after the country’s worst home-price correction on record sparked a sudden awareness of the risks of owning property. The pullback is coming at a crucial time for Canada’s economy: It’s already posted one quarterly contraction in the face of ...