A new report says the sector is showing signs of stability across Canada at the midway point of the year as enthusiasm tempers, but new tariffs announced by the U.S. this week could be factor to watch.

While CREA sees a milder pace of activity ahead than expected, others say there’s cause for mild optimism – even though challenges are continuing

BMO expects the Bank of Canada to remain firmly on hold this year, but says worsening trade relations with the U.S. could put rate cuts back in play.