GTA new-home sales slump to another record low

The Greater Toronto Area (GTA) saw new-home sales slide in January, hitting another record low as the city's condo market crisis deepened.

According to the Building Industry and Land Development Association (BILD), just 269 new homes changed hands across the GTA in January 2026. That's down 36% from a year earlier and 80% below the 10‑year average of 1,339 deals.

Condominium apartments accounted for only 85 of those sales, 50% lower than January 2025 and 89% beneath their decade norm, while single‑family sales fell to 184 transactions, 26% below last year and 68% under the 10‑year average.

Sales slump deepened a historic downturn

“GTA new home sales started 2026 the same way they ended 2025 with another record low for the month,” said Edward Jegg, research manager at Altus Group, BILD’s market intelligence provider.

“The sustained nature of the new home slowdown has been underpinned by the combination of affordability concerns and failing consumer confidence.”

That weakness followed a brutal 2025, when GTA new home sales fell to 5,314 units – the lowest annual tally in 45 years of data and more than 80% below the prior decade’s average. In late 2025, BILD highlighted 13 straight months of record‑low sales and an inventory overhang already past 20 months of supply.

Total remaining new‑home inventory in the GTA barely budged in January, at 20,557 units – 14,731 condo apartments and 5,826 single‑family dwellings – representing roughly 26 months of supply, the highest level recorded to date.

The benchmark price for new condo apartments held near $1.03 million, while single‑family benchmark values slipped about 10% year over year to $1.40 million, suggesting a nascent price floor rather than a full‑blown correction.

Policy debate sharpened as inventory swelled

“In order to turn these figures around we need market certainty coupled with steps to support consumer confidence to move buyers off the sidelines,” said Justin Sherwood, BILD’s chief operating officer.

“Without that, we will continue to see record‑low home sales and this will have significant employment and economic impacts across the region – and undermine future starts and supply.”

Sherwood said longer‑term structural changes are required but urged Ottawa to act quickly on promised cuts to development charges and tax changes in the near term.

“At this time, it is vital that governments work with speed and urgency to help support consumer confidence and revitalize activity in the market through policy changes that address government‑added costs to new homes,” he said.

In Ontario alone, Canada Mortgage and Housing Corporation (CMHC) found development charges could represent 8% to 16% of a new condo price and up to 9% of the cost of a single-detached home in Toronto.

Industry groups also warn homebuyers are “still bearing the burden of soaring development fees,” with the Ontario Real Estate Association estimating that on average, development charges could add “up to $135,000 to the cost of a new home” in some markets. 

Source: Canadian Mortgage Professional