A surge in available housing units, driven by rising mortgage costs, is pushing Toronto’s real estate market towards a price correction. The city’s condominium market, where inventory has reached record highs, is particularly vulnerable. While sales have increased slightly, listings have soared, creating a ‘buyers’ market with no buyers.’
New condo sales in the Toronto region have dropped to their lowest level since the 2009 financial crisis, with soaring purchase prices and higher borrowing costs deterring investors. Developers are putting projects on hold due to weak sales, further delaying the construction of new homes at a time when governments are trying to increase housing supply. Meanwhile, soaring existing home prices make affordable housing out of reach for many Canadians.
