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Toronto New Home Sales Hit Grim Record Lows — What This Means for Homeowners, Investors & Builders

New home sales in the Greater Toronto Area have reached historic lows — and the consequences are far bigger than most people realize.
December 25, 2025 by
Toronto New Home Sales Hit Grim Record Lows — What This Means for Homeowners, Investors & Builders
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According to Building Industry and Land Development Association (BILD), only 165 condo apartments were sold across the GTA in November, a staggering 40% drop year-over-year.

Total new home sales?

Just 510 units — down 35% from last year and 83% below the 10-year average, based on data from Altus Group.

After 22 consecutive months of decline, industry experts warn 2025 may be the worst year for new home sales since records began in 1981.

📉 Why the Toronto New-Build Market Is Breaking Down

This isn’t a demand problem — it’s an affordability and financing crisis.

Key factors behind the collapse:

  • Sky-high construction costs

  • Development charges and layered taxes

  • Higher interest rates

  • Frozen pre-construction financing

  • Bank pullback from construction lending

As BILD COO Justin Sherwood warns, the warning signs of a future housing supply crunch are already here:

  • Fewer units under construction

  • Fewer pre-construction launches

  • Developers shelving projects

When supply dries up, prices don’t fall — they spike later.

🏠 What This Means for Homeowners Right Now

For homeowners, this slowdown creates short-term stress but long-term opportunity.

In the near term:

  • Renovations and refinancing are harder with banks

  • HELOC limits are tightening

  • Appraisals are conservative

But long term:

  • Limited future supply supports property values

  • Renovated and income-producing homes become more valuable

  • Equity-based strategies outperform waiting

This is where private mortgage solutions step in.

💡 How Lendworth Is Filling the Gap Banks Created

As banks retreat from risk, Lendworth is doing what private lenders do best — provide fast, equity-based financing when the system slows down.

We help homeowners, investors, and builders with:

  • First & second mortgages

  • Home equity loans & private lines of credit

  • Renovation & rebuild financing

  • Construction & land loans

  • Bridge financing

  • Estate, probate & executor loans

  • Emergency, divorce & separation financing

When timing matters, speed matters.

🏗️ Why Builders & Investors Are Turning to Private Capital

With traditional construction loans disappearing, private lenders are now critical to keeping projects alive.

Lendworth supports:

  • Infill projects

  • Small residential developments

  • Custom home builds

  • Renovation-to-refinance strategies

Structured with:

✔ Conservative loan-to-value ratios

✔ Clear exit strategies

✔ Staged funding

✔ Fast approvals

📈 The Bigger Picture: Today’s Slowdown = Tomorrow’s Shortage

History shows this pattern clearly:

  • Construction slows

  • Supply shrinks

  • Population grows

  • Demand returns

  • Prices rise

Those who secure financing now — renovate, build, or consolidate strategically — are positioned far better than those who wait.

📞 Need Fast Financing in a Slow Market? Call Lendworth.

If banks have slowed you down, or you need real answers in real time, Lendworth is ready.

📞 Call Lendworth today

⏱️ Same-day approvals available

🏠 Ontario-wide private mortgage solutions

Your equity deserves more™