GTA Condo Supply Approaching A Number “The Market Has Never Seen”

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Zakiya has reported on real estate for Apartment Therapy, Curbed, and Post City Magazines. She also writes a quarterly series for a Canadian design publication.

How long will it take for almost 40,000 condo units — be those unsold units in development, assignment listings, or resale listings on MLS — to be absorbed into the GTA market?We may be in the thick of a housing crisis, but there’s still a deluge of condo listings that are sitting, more or less untouched, on the Greater Toronto Area’s market.

“A balanced level of new and resale condo supply should take about 14 to 16 months to absorb. Basically, this means that supply is at least 3.5 times higher than normal,” he explains. “Sales are so slow right now that they really can’t go any lower — new condo sales were at a nearly 30-year low in Q3.”

"With land, labour, and material prices being what they are, it is very difficult to build a new home at a cost that the market will readily absorb – and this issue is manifesting itself in the form of low sales," says Justin Sherwood, BILD's SVP of Communications & Stakeholder Relations.

 

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