There were 1,461 new condo sales in the Greater Toronto and Hamilton Area in the first quarter of the year, marking the lowest quarterly amount since early 2009
This is the best summary I could come up with:
New condo sales in the Toronto region dropped to their lowest level since the 2009 financial crisis, with investors balking at lofty purchase prices and higher borrowing costs.
The slowdown has imperilled the construction of homes at a time when governments are trying to spur more building in a bid to make housing more affordable.
The preconstruction condo market started to falter in 2022 as the Bank of Canada raised interest rates to cool inflation.
That is unattractive for prospective homeowners who plan to live in their condo, as well as for investors, who make up the bulk of the preconstruction purchases.
“It’s very difficult for investors to make the numbers work on buying new condos, given their record-high price premium over resales and steeply negative cash flow on rentals,” Urbanation president Shaun Hildebrand said.
However, given that Toronto region developers typically require a 20-per-cent deposit, the longer amortization is not expected to make a big difference in the new-home market.
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