New report outlines difficulties of selling newly built homes in the GTA

Only 269 new homes were sold in the GTA

last month, making it the worst January

in the home building industry since

1981.

>> CTV's Janice Golding breaks down the

numbers.

>> This building is 30 stories.

>> Ralph Deluke has been in the building

business for more than 40 years. The

head of Chestnut Hill Developments has

six projects in the works with digging

for the wild slated to begin later this

summer.

>> We came to market uh uh early last year.

We're about 50% sold.

>> Still, Deluca says four other projects

he's planned for this trip of Marley

have been delayed.

>> Well, it's slow and you have to be

realistic about your uh your numbers and

how sales go.

>> Part of a trend representatives from the

building industry say show no signs of

slowing down.

>> We're into this cycle right now of of

cascading record lows. The Building

Industry and Land Development

Association says new home sales have

seen their worst January for new home

sales since they started keeping track

in 1981 with 269 homes sold last month.

That's 36% less than the year before and

a whopping 80% drop from the 10-year

January average.

>> Lowest January on record. And it's

following on uh the worst year on

record, which was uh 2025. Only 85

condos sold last month, which is a 50%

drop compared to last year and down 89%

from a 10-year average.

>> I think the biggest cause right now is a

lack of confidence on the on the buyer

side.

>> Meanwhile, 184 single family homes sold,

which is a 26% drop compared to the year

before and 68% lower than the 10-year

average. So the construction that you

see occurring today is a result of past

sales activity occurring two 3 four

years ago. Once that uh construction

comes to an end, the industry will be

slowing down and we're looking at the

potential for about 100,000 layoffs

across uh across the province.

>> The sales slump leading to deferred or

cancelled projects.

>> Come 2728,

we're going to start to see a shortage

of product out there. If you don't have

anything in the pipeline that comes

after that, um you're you're looking at

very tight supply conditions that will

in in the end drive up cost.

>> At present, there is a lot of inventory

out there, close to 15,000 condos and

nearly 6,000 single family dwellings.

>> The small units, 300 ft, 400 ft², which

are twocar garage units, which are not

habitable. And that's where the the bulk

of the the the product that we have in

our city right now are on the market and

can't sell cuz people can't live in

them. This project here is open. It's

totally sold out.

>> But Ralph Deluca says if you build

livable homes, there will be buyers with

build predicting a supply drop that will

drive up price starting in late 2027.

Janna Golding, CTV News.