GTHA new condo sales climb, but supply threat looms
Partially offsetting that, active resale listings fell 21% to 7,105 units, a three-year low and the largest annual decline in more than four years.
Combined months of supply eased to 7.3 from a peak of 8.5 a year earlier, the first meaningful improvement since the current downturn began.
The composition of resale inventory also challenges a persistent market narrative. Units under 600 square feet accounted for 20.4% of active resale listings in Q2-2026, down from a high of 24.3% in 2024.
Of the 5,001 developer-held completed units, 54% are over 700 square feet, with 57% in two-bedroom or larger layouts, pushing back on assumptions that the condo downturn is driven primarily by a glut of micro units.
Toronto condo prices keep falling, but opportunity is emerging.
Micky Khaneka of MKG Mortgages says improving affordability is creating a rare opening for first-time buyers, even as excess supply continues to weigh on the condo market.https://t.co/ycrAG2UloX
— Canadian Mortgage Professional Magazine (@CMPmagazine) July 9, 2026
The coming supply crunch
Even as early stabilization signals emerge, the longer-term supply picture has grown more urgent. Combined pre-construction and under-construction inventory fell to 48,710 units in Q2-2026. That’s down 37% year-over-year and 62% below the 2022 peak of approximately 127,000 units.
