Developers struggle as buyers back off, leaving historic volume of homes unsold
The Greater Toronto Area’s new home market just posted its worst February on record, with nearly 17,000 new and pre-construction condo units left unsold as sales plunged amid growing uncertainty.
Only 400 new homes, including 152 condo units and 248 single-family homes, were sold across the region last month, while close to 22,000 units sat untouched on the market. According to the Building Industry and Land Development Association (BILD), that’s a 50% drop from February 2024 and an 85% decline compared to the 10-year average for the month.
“New home sales across the GTA in February 2025 remained at rock bottom levels,” said Edward Jegg, research manager at Altus Group, which compiled the data. “Uncertainty related to upcoming US tariff levels have further added to the reservations buyers previously had on their minds.”
Despite the steep decline in demand, prices held relatively steady. The benchmark price for new single-family homes dipped just 2.9% from last year to $1,536,734, while condo prices slid 2.4% to $1,021,760.
A regional breakdown of sales shows that nearly all single-family home purchases happened outside Toronto, with just one sale recorded within the city itself. Condos saw the opposite trend: 56 of the 152 units sold were in Toronto proper.
The GTA resale market showed similar softness. The Toronto Regional Real Estate Board reported a 1.8% year-over-year decline in the MLS Home Price Index Composite benchmark in February, with the average selling price down 2.2% to $1,084,547. Both benchmarks edged lower month-over-month after seasonal adjustment.
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During a period BILD described as a “time of economic uncertainty,” the group is urging policymakers to focus on getting sales and construction moving again.
“This can only be accomplished if government policy aligns to get housing sales and construction moving again,” said Justin Sherwood, BILD’s senior vice president of communications, research, and stakeholder relations.
Sherwood also welcomed recent GST-cut proposals from both major party leaders aimed at first-time homebuyers — $1.3 million under the Conservatives and $1 million under the Liberals.
“To be successful in addressing affordability, these policies must apply to the largest number of buyers, have price thresholds that are reflective of the GTA market reality and be matched by the provincial government,” he said in the report.
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