Toronto-area new home sales ‘frozen’ with condo deals falling 91 per cent below the 10-year average

New home sales in the Toronto area have come to a standstill, with condo deals seeing a dramatic 91% drop compared to the 10-year average, according to recent market data. This sharp decline highlights the challenges in the real estate market, as rising interest rates and economic uncertainty discourage buyers.

The decline in condo sales is especially concerning since they have traditionally been a key driver of new housing activity in the Greater Toronto Area. Experts believe potential buyers are hesitating due to affordability concerns and stricter mortgage rules.

Single-family homes are also experiencing sluggish sales, compounding the housing sector's struggles. Developers are slowing construction, adding to fears about the long-term supply of new homes. Many buyers are waiting on the sidelines, hoping for more favorable market conditions.

This "frozen" state of the market is a stark contrast to the boom seen in recent years. Realtors note that while demand for housing remains high, current economic pressures have significantly reduced the ability to finalize deals, even for eager buyers.

Industry analysts are urging governments and policymakers to address the issues stifling the market, including affordability and supply constraints. Without intervention, the slowdown could lead to lasting consequences for Toronto's housing landscape.

The current conditions mark a pivotal moment for the real estate sector. Experts suggest buyers and sellers should keep a close watch on the market in the months ahead, as changes in interest rates or economic outlook could quickly shift dynamics.