Unprecedented Decline in Condo Sales

In a startling revelation, the Greater Toronto Hamilton Area recorded a mere 4,590 condo transactions, marking a 64% decrease from the previous year. This downturn represents the third consecutive annual drop, a trend meticulously documented by the market research firm, Urbanation.

Chart by Urbanation

Record High in Unsold Units

The end of last year saw unsold new condo units, encompassing pre-construction, under construction, and recently completed projects, soar to a record high of 24,277 units. At the current sales pace, it would take an astonishing 64 months to clear this inventory.

Expert Insights

Urbanation President Shaun Hildebrand remarked, "The new condo market just experienced its toughest year in three decades." He further elaborated on the grim outlook for the market, citing investors' challenges with negative cash flow, financing hurdles, and declining prices and rents as primary deterrents to presale activity.

Future Projections

Hildebrand anticipates the slump in pre-sale activity to persist, significantly hampering construction starts in 2025. This trend is expected to lead to a substantial reduction in new supply by 2026-2027, further exacerbating the market's challenges.