Two-Thirds of Canadian Agents Report Record Client Risk Aversion as U.S. Politics Dampen Housing Confidence

A new nationwide survey of Canadian real estate professionals reveals that client risk aversion has reached unprecedented levels, with political instability south of the border now supplanting interest rates as the primary psychological barrier to transactions. The Ownright Operators Report, published May 26 and based on responses from over 1,000 industry practitioners, found that 67 percent of agents report their clients are more risk-averse today than they were prior to 2022. Joel Fox, co-founder and chief operating officer of Ontario-based digital real estate law platform Ownright, noted that despite declining borrowing costs and softening average prices, market participants remain deeply uneasy about committing to major property decisions.

This shift in consumer psychology marks a significant departure from traditional market mechanics, where rate cuts typically stimulate buyer activity and price stability encourages seller participation. According to Fox, the current environment represents a disconnect between financial fundamentals and behavioral reality—declining interest rates and average prices have not produced the expected market rebound because recession fears and U.S. political volatility have created a confidence deficit. The survey data suggests Canadian buyers and sellers are treating macroeconomic uncertainty as immediate transaction risk, effectively sidelining capital despite improved affordability conditions compared to the peak-rate environment of 2022-2023.