The Greater Toronto housing market reached a critical turning point in October as new construction sales plummeted across all segments, with data from Altus Group and BILD GTA revealing unprecedented declines despite major price reductions.
Luxury single-family dwellings, typically the market’s flagship segment, saw prices retreat to $1.55 million after a $15,600 monthly decline. This continues a dramatic price correction that has erased $751,000 in value since the 2022 market peak, bringing prices back to levels not seen since 2021. With only 555 homes changing hands, sales remained significantly below historical patterns.
The condominium sector’s performance signals an even more concerning trend. Once considered a resilient market segment, condo prices are now falling at nearly twice the rate of houses, dropping $18,900 in October alone to hit $1 million. The sector has surrendered $483,700 from its peak value, marking its lowest point in four years.
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October’s market activity painted a particularly bleak picture, with merely 210 condo transactions completed across the entire Greater Toronto region — an astonishing 91% below typical volumes. Combined with single-family sales, total new home purchases reached just 765 units, defying seasonal patterns and standing 77% below historical averages.
The market’s inability to gain traction, even as existing home sales show signs of life, suggests deeper structural issues. Industry observers note the exodus of investors from the condo market coincides with softening rental rates, while astronomical housing prices continue to sideline typical buyers despite the significant corrections already seen.
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