The real estate market in Toronto is experiencing a significant downturn, with demand for new homes plummeting to some of the lowest levels in years. Despite attractive incentives and falling prices, buyers seem hesitant to enter the market. Specifically, the condo apartment segment is facing a sharp decline, with sales dropping over 91% from the 10-year average.
Here are some key points to consider about the current state of the housing market in Greater Toronto:
- New home prices have seen a dramatic decrease, with single-family home prices dropping by 32.6% from their peak in 2022. Condo prices have also fallen significantly, with a 32.5% decrease from the record high.
- In October, only 765 new homes were sold in Greater Toronto, marking a 60% decrease from the previous year and 77% below the 10-year average.
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Sales of single-family homes have remained stagnant, with just 555 units sold in October. This segment is currently 45% below the 10-year average.
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Condo apartments are facing even greater challenges, with only 210 units sold across Greater Toronto in October. This represents an 84% decrease from the previous year and a staggering 91% below the 10-year average.
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The decline in new home sales is attributed to weak demand and unaffordable prices for many households. Despite efforts to stimulate the market, buyers remain cautious.
Overall, the current state of the real estate market in Toronto is concerning, with both single-family homes and condo apartments facing significant challenges. It is essential for stakeholders to closely monitor these developments and consider potential solutions to revitalize the market.
