The Impact of Declining Pre-Construction Condo Sales on the Housing Market

A recent report said that condo sales in Toronto are at a 27-year low. Insolvencies amongst condo developers are rising and set to be 57-per-cent higher than 2023 and 13-per-cent higher than 2009. This means there are a glut of units for sale. And yet, prices aren’t really going down.

So what’s happening here? Rachelle Younglai, a real estate reporter for The Globe and Mail, explains why the pre-construction market is in ‘recessionary territory’ and how all of this could make Canada’s housing affordability crisis worse over the next few years.

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