Toronto New Home Sales Fall To Record Low, Just 42 Condos Sold In The City

In May 2025, demand for new homes in Greater Toronto hit a new low. Developers sold just 345 new homes that month—64% fewer than a year earlier and a staggering 87% below the ten-year average. This marks the eighth straight month of historically weak sales across a region of over seven million people.

Breaking it down by type, single-family homes fared slightly better, with 208 sold—still down 53% from last year and 74% below the decade average. New condo sales took an even harder hit: only 137 units were sold, dropping 74% from the previous year and falling 93% under the 10-year norm.

The situation inside City of Toronto limits is even more dramatic. Developers sold just 42 new condo apartments in the city during May—a fall of 69% compared to last year and a nearly unheard-of 97.4% lower than sales in May 2021. Only six new single-family homes were sold in the city in that same month—a steep 66.7% drop year-over-year.

Despite the slump in sales, weekly prices showed mixed signals. Single-family home prices dipped 1.6% to about \$1.51 million in May, down 6.6% from a year ago—bringing them back to roughly 2021 levels, although still double what they were a decade ago. Condo prices ticked up slightly—by 0.2% to \$1.02 million—but remain 2.2% below last year and over 20% off the 2022 high. Given the tiny number of sales, this bump may not mean much—it could just be noise in the data.

Meanwhile, inventory continues to pile up. At the end of May, the Greater Toronto Area had about 21,600 new homes for sale—up 1% from the prior month and 5.6% above last year’s level. That’s the highest May inventory total since 2016, with about 17 months of supply on the market. Experts generally say six months or more of inventory signals a buyer’s market, where prices are likely to fall.

Some measures—like stretching out appraisals or adding financing incentives—can delay price drops. But they risk distorting the wider market. Artificial support might delay the correction, but it could also make the eventual adjustment sharper and more painful.