REAL ESTATE MARKET UPDATE
Toronto's real estate market is facing mounting pressure as housing inventory continues to climb while sales remain sluggish—particularly in the condo segment. As of the end of May, data from the Toronto Regional Real Estate Board (TRREB) shows there were 11,705 active listings in the City of Toronto. Of those, 6,855 were condo units, representing nearly 60% of the city's total housing inventory.
This proportion of condo listings has remained consistent over the past year, ranging between 59% and 66%, reflecting the long-term growth of condo developments in the city. However, what's becoming increasingly evident is a growing imbalance between supply and demand. In May, only 973 condos were sold through the MLS system—a 25% decline from the same month last year. This volume is far below the number of new condo listings that month and highlights a sharp drop in buyer activity.
Much of the condo inventory on the market is resale, largely due to years of strong construction activity that has expanded the city's condo stock. Condo apartments have steadily grown as a share of Toronto's housing market over the last two decades. However, the current situation reveals a disconnect—while the number of units continues to rise, buyer demand has not kept pace.
In addition to the resale inventory, a large number of new condo units remain unsold across different stages of development. In Toronto alone, there are approximately 6,400 unsold pre-construction units, nearly 6,000 under construction, and over 1,100 completed units that have not been sold. These figures do not account for pre-sold units that failed to close, which could further inflate the actual inventory.
This situation is reminiscent of the condo market correction in the 1990s, which took nearly a decade to recover. The current trend of rising resale inventory and fewer new project launches raises concerns about long-term housing availability. A decline in new construction activity today may lead to a supply shortage when demand eventually rebounds.
Supporting this outlook, the Canada Mortgage and Housing Corporation (CMHC) reports that by the end of Q1 2025, 55% of pre-construction condos in Toronto remained unsold. This rate is just below the record 56% seen at the end of 2024. Since most lenders require 70% of units to be pre-sold before releasing construction financing, many developers are now struggling to move forward with projects. As a result, the number of condo project cancellations has risen sharply—five times higher than in 2022—and this trend is expected to continue, along with slower construction and reduced investor activity.
Concluding Summary:
Toronto's condo market is under stress, with sales failing to keep up with rising inventory. Resale prices are declining, new developments are facing financing challenges, and thousands of units remain unsold across all construction stages. Unless the market stabilizes, Toronto may face both short-term weakness and long-term supply issues.


Zabi Afghanzada Realtor 416 879 2500
HomeLife Elite Services Realty Inc.,Brokerage
Independently Owned And Operated
Office 416 283 1555
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