Toronto-area new home sales marked the worst July on record, “eclipsing” the 1990s housing downturn.
GTA new homes sales remained “exceedingly low” at levels not seen in decades, according to a Wednesday report from the Building Industry and Land Development Association (BILD).
In 1990, there were 4,434 sales from January to July. In 2025, there were 3,007 sales from the same period.
“GTA new home sales in July 2025 extended the severe slowdown the market is currently in the midst of with another record low for the month,” said Edward Jegg, research manager at Altus Group — BILD’s source for new home market data.
“The protracted nature of this market has now surpassed the severe downturn in new home sales during the early 1990s.”
Sales have never been this low in the more than 40 years Altus has been collecting new home sales data.
There were 359 new home sales in July, down 48 per cent from July 2024 — and 82 per cent below the 10-year average, the report said. Historically, new home sales for a typical July in the GTA would be 1,941 units based on the previous 10-year average.
“What more evidence is needed to demonstrate that we need concerted action to address the crisis that is stalling out new supply and compounding the challenges in the GTA housing market?” said Justin Sherwood, senior vice-president of communications, research and stakeholder relations at BILD.
Broken out by housing type, condos performed the worst with 150 units sold in July, down 51 per cent year over year, and 89 per cent below the 10-year average. Condos include units in low, medium and highrise buildings.
There were 209 single-family home sales in the GTA in July, down 44 per cent from July 2024 and 60 per cent below the 10-year average. Single-family homes include detached, semi-detached houses and townhouses.
The benchmark price for new condos in July remained flat at more than $1 million, while new single-family home prices saw a 6 per cent drop over the last 12 months, reaching $1.48 million in July.
Total new home remaining inventory in the GTA increased slightly compared to the previous month. The inventory level — the time it would take to sell inventory on the market based on current demand — is 20 months. This is the highest inventory level seen to date. A healthy market level is around nine to 12 months.
“Emerging from the 1990s downturn took years, with prolonged negative economic impacts and unemployment in the sector. The market, leaders within the industry and top economists are flashing every possible warning light, and the lesson from the 1990s downturn is clear: if government stands by, the pain will be deep and prolonged. To avoid repeating history, government intervention is not optional — it is urgently due,” said Sherwood.
The federal government has promised to help developers and the homebuilding sector.
In May, the federal government tabled legislative proposals to introduce a new goods and services tax (GST) rebate for first-time homebuyers, eliminating the five per cent GST from the purchase of select new homes.
Some municipalities are also eliminating or reducing development charges, which the building industry says is a significant barrier to building more housing.
