Toronto | Arab Canada News

The real estate market in the Greater Toronto Area (GTA) is experiencing an unprecedented crisis, as new home sales have recorded their lowest levels ever for the seventh consecutive month, surpassing the historical decline witnessed in the market in the 1990s, according to new data from the Ontario Home Builders' Association (BILD) and market research company Altus Group.

The report stated that the number of new home sales in April reached only 887 units, representing a decrease of 47% compared to the average sales for April over the past decade. This decline marks an extension of a series of months where sales did not surpass the threshold of one thousand units.

Tanya Bozowski, Chair of the Ontario Home Builders' Association, stated that these numbers "reflect a state of paralysis in the market resulting from declining consumer confidence, rising interest rates, and delays in construction projects," emphasizing that the market is going through a critical phase that requires direct government intervention to support supply and stimulate demand.

This sharp decline in sales is attributed to a combination of overlapping factors, including rising borrowing costs, inflation of property prices, and general economic uncertainty, which has led many potential buyers to adopt a wait-and-see approach.

The report pointed out that sales of residential condominiums have decreased by 77% compared to the historical average, while sales of detached homes have fallen by 13%.

Authorities warn that the continuation of this trend could negatively impact the construction and urban development sector, leading to a slowdown in job creation and a shortage of housing supply in the medium to long term.