GTA New Home Sales Drop 80% Amid Rising Inventory, Market Slump

New home sales in the U.S. and Greater Toronto Area (GTA) remain subdued amid rising inventories and economic uncertainty in mid-2025. In the U.S., new single-family home sales rose slightly by 0.6% in June but remain 6.6% below last year, with the supply of new homes hitting the highest levels since 2007, driven in part by a large inventory of unsold homes and vacant lots counted as homes for sale. Median prices have decreased, offering some relief to buyers, while regional disparities persist with sales improving in the Midwest but declining sharply in the West and Northeast. The GTA faces a more severe downturn, with June new home sales down 60% year-over-year and 82% below the 10-year average, reflecting historic lows driven by high interest rates, affordability challenges, and economic concerns, particularly around U.S. tariff policies. Industry leaders in the GTA emphasize the need for bold government intervention, including GST relief and development charge reductions, to revive the struggling housing market amid high development costs and waning consumer confidence. Overall, both markets illustrate a stalled new home sector challenged by economic headwinds and high inventories despite some regional variations.