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GTA New Home Sales Collapse to Record Lows in 2026 — What It Means for Ontario Borrowers

The Greater Toronto Area housing market has opened 2026 with a shock.
February 25, 2026 by
GTA New Home Sales Collapse to Record Lows in 2026 — What It Means for Ontario Borrowers
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According to the latest data from Building Industry and Land Development Association (BILD), only 269 new homes were sold in January — the lowest January on record.

To put that in perspective:

  • 🔻 Sales are down 36% year-over-year

  • 🔻 Sales are 80% below the 10-year average

  • 📊 A typical January sees 1,339 new homes sold

This isn’t just a slow month — it’s a structural freeze.

And for borrowers in Ontario, this changes everything.

Why GTA New Home Sales Are Crashing

Research from Altus Group, BILD’s data provider, points to two main issues:

  1. Affordability pressures

  2. Declining consumer confidence

Even though benchmark prices have fallen:

  • 🏠 Single-family homes: $1,397,358 (down 10% year-over-year)

  • 🏢 New condos: $1,027,286

Buyers are still hesitant.

High carrying costs, qualification stress tests, and income-based approvals are keeping traditional mortgage financing tight.

And when confidence drops, buyers wait.

Inventory Is Rising — But Buyers Aren’t Moving

BILD reports 20,557 new homes sitting in inventory across the GTA:

  • 14,731 condo apartments

  • 5,826 single-family homes

That’s a significant supply overhang — and it creates opportunity.

Because when new home sales stall, developers feel pressure. When developers feel pressure, pricing, incentives, and financing flexibility increase.

This is where strategic borrowers win.

What This Means for Ontario Homeowners

When the new construction market slows:

  • Builders may offer discounts

  • Assignments increase

  • Private financing becomes more common

  • Bridge loans rise

  • Equity becomes leverage

Many borrowers right now are:

  • Denied renewals

  • Facing tighter bank qualification

  • Sitting on equity but lacking income ratios

At Lendworth Financial, we don’t lend based on income.

We lend based on equity.

Equity-Based Lending During Market Slowdowns

In times like this, banks tighten.

Private lenders move.

If you:

  • Need to close on a new build

  • Are stuck between sale and purchase

  • Were denied by your bank

  • Need capital to reposition or refinance

  • Want to access home equity while prices are soft

We can structure:

Approvals in as little as 24 hours.

No traditional income stress test.

Because in Ontario’s shifting housing market, your equity deserves more™.

The Bigger Economic Risk

Industry leaders warn that prolonged record-low sales could impact:

  • Construction jobs

  • Trade employment

  • Municipal revenues

  • Future housing supply

If sales remain depressed, new housing starts will drop — and that eventually tightens supply again.

Markets move in cycles.

Smart borrowers position early.

The 2026 Strategy: Use Equity While Others Wait

While consumer confidence is low, opportunities are high.

If you own property in:

Now may be the time to restructure, refinance, or leverage.

Because when markets shift again — and they will — those who positioned early benefit most.

Speak to a Private Mortgage Lender in Ontario

If your bank said no…

If you’re buying in a slow new-build market…

If you need fast funding to act on opportunity…

📞 905-597-1225

🌐 www.lendworth.ca

Ontario Private Mortgage Lender. Fast Funding. Equity-Based Approvals. Real Solutions.

Your Equity Deserves More™