Toronto New Home Sales Crash 72% To A Record Low

In April 2025, the Greater Toronto Area saw new home sales plunge by 72 percent compared to April 2024. Just 310 new homes were sold—marking the lowest April on record and 89 percent below the ten-year average for the month. This shocking drop pushed demand to historic lows.

Despite the crash in sales, prices have only eased modestly. The benchmark price for a new single-family home slid 5.4 percent over the past year to about C$1.53 million, while new condos declined 3.6 percent to around C$1.02 million. Those price levels now sit near where they were in mid-2021—well below pandemic peaks but still very high by historical standards.

Inventory, however, continues to swell. By the end of April, there were over 21,300 unsold new homes on the market—a rise of 6.3 percent year-over-year—with enough to supply the GTA for about 15 months at current sales levels. That far exceeds the healthy benchmark of four to six months and firmly establishes a buyer’s market.

Analysts say sales have been hurt by uncertainty over trade tariffs, rising unemployment, and deep unaffordability. Economic anxiety, especially around U.S.-Canada tariff talks, has frozen many potential buyers. Meanwhile, younger workers are leaving Ontario for cheaper provinces like Alberta.

Industry voices are warning of broader impacts. Some experts suggest that if sales don’t rebound, Toronto-area housing starts may fall sharply—potentially costing tens of thousands of construction jobs and billions in annual investment. They also note that high builder costs limit how low prices can drift, even amid weak demand.

Some readers online link this trough to the shutdown that followed Toronto’s 1990–91 housing crash. Historical comparisons indicate that April 2025 sales were worse than during any month of that downturn, even though average pricing then was many times lower in absolute terms. In short: this crash is deeper and steeper in terms of demand collapse, though still anchored by stubborn price levels.