Home sales in the Greater Toronto Area have collapsed to historic lows, with new home purchases dropping 72% in April as economic uncertainty and affordability challenges grip Canada’s largest housing market.
Just 310 new homes sold across the GTA in April 2025, down from 1,127 a year earlier, according to data from the Building Industry and Land Development Association. The figure represents an 89% decline from the 10-year average and marks the worst performance on record for the sector.
The broader resale market is also struggling, with 5,601 existing homes changing hands in April, a 21% drop from the previous year, the Toronto Regional Real Estate Board reported. Active listings have surged to their highest level in almost 29 years.
The collapse follows a pattern of sustained weakness. “New home sales across the GTA in February 2025 remained at rock bottom levels,” Edward Jegg, research manager at Altus Group, said about earlier data. “Uncertainty related to upcoming US tariff levels have further added to the reservations buyers previously had on their minds.”
The sales collapse has created a massive inventory buildup. More than 21,000 new homes sit unsold across the region, including 16,555 condominium apartments and 4,808 single-family homes. In the resale market, inventory has been surging, with earlier reports showing increases of more than 70% in some months.
Average home prices have declined 4.2% year-over-year to $1.1 million, with all property types showing weakness. Detached homes averaged $1.43 million, down 5.6%, while condominiums fell 6.9% to $678,000.
Multiple factors are keeping buyers away, industry officials say. Mortgage rates around 4% remain elevated despite recent Bank of Canada cuts. More significantly, as Jegg said, uncertainty over potential US tariffs on Canadian goods is creating broader economic anxiety.
The housing slump extends beyond real estate. Construction activity is expected to slow given the massive unsold inventory, while reduced transaction volumes mean lower government revenues from land transfer taxes.
For buyers, the market offers unprecedented choice and negotiating power. But sellers and developers face significant challenges that may require strategic pricing adjustments.
The market weakness comes despite Canada’s immigration-driven population growth, which has historically supported housing demand in the Toronto region. Industry analysts expect the downturn to persist throughout 2025 as economic uncertainties continue.
Single-family home sales dropped 66% year-over-year to 205 units in April, while condominium apartment sales plunged 80% to just 105 units. Both figures represent the lowest levels since tracking began.
The Toronto area typically sees about 90,000 home and condominium sales annually, but volumes have slumped to roughly 65,000 for the past two years as affordability constraints and economic uncertainty weigh on buyer sentiment.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
