The new condo market in Toronto and Hamilton has taken a serious turn for the worse. Sales of new condominiums have dropped to their lowest levels in 30 years, while the number of unsold units keeps rising. There are now far more condos available than people looking to buy, which is creating a major imbalance in the market.
In the second quarter of 2025, only 502 new condos were sold across the Greater Toronto and Hamilton Area. This is a huge 69 percent drop compared to the same time last year, which is usually one of the busier periods for condo sales. The sharp decline is raising concerns about the health of the region’s housing market.
At the same time, the number of completed but unsold condos has hit a record high. More than 2,400 units are finished and sitting on the market. That’s more than double last year’s number and five times more than two years ago. Experts say this much unsold inventory could take about five years to clear.
Developers are responding by pulling back. Only three new condo projects were launched in the last quarter, while four others were canceled. Since early 2024, more than 4,000 planned condo units have been scrapped, and many of those are now being turned into rental buildings instead.
Prices are beginning to fall as well. The average asking price for new condos has dropped by 6 percent over the past year and is now well below its previous peak. On top of that, people who are reselling their condos are accepting much lower prices, which is creating a wide gap between what developers want and what buyers are willing to pay.
Altogether, these signs show a market that’s gone from struggling to seriously troubled. With sales slowing, inventory piling up, projects being canceled, and prices dropping, both builders and buyers are feeling the pressure. Unless demand picks up or fewer new condos come onto the market, things aren’t expected to improve anytime soon.