Shocking Decline in New Condo Sales!

In a startling revelation, new condo sales in the Greater Toronto Hamilton Area (GTHA) have plummeted over 60% year-over-year, marking the lowest quarterly total since 1995! Urbanation's latest Q1-2025 report has unveiled that sales have nosedived a staggering 88% below the 10-year average.

A Deep Dive into the Numbers

Only 215 new condos found buyers this quarter in Toronto, a figure that hasn't been seen since 1990. Such a drastic drop indicates that buyers are retreating amid rising uncertainty and escalating costs, particularly exacerbated by ongoing trade tensions with the U.S.

The Impact: Projects Shelved and Canceled

The current real estate climate is forcing many developers to rethink their strategies. A staggering 28 presale projects in the GTHA—promising over 5,700 units—are now on hold, canceled, or being converted into purpose-built rentals. This wave of cancellations signals serious challenges ahead for the market.

Inventory Crisis: What Lies Ahead?

The first quarter of 2025 saw unsold new condo inventory swell to 23,918 units, reflecting a 6% rise and representing a shocking 78 months of supply. Nearly half of these unsold units—about 11,000—are pre-construction projects, with another 11,000 under construction.

The Bigger Picture: Housing Development Woes

As Toronto leans heavily on condos for more than 50% of its housing development, this slowdown spells dire consequences for future supply. "The magnitude of this slowdown will undoubtedly create significant supply issues," warns Shaun Hildebrand, President of Urbanation. What does this mean for housing prices and availability in the city? Buckle up, Toronto—this real estate rollercoaster is far from over!