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As of late summer 2025, Toronto's real estate market is experiencing a notable slowdown, particularly in the new home sector. Rising interest rates and economic uncertainty have led to decreased buyer confidence, resulting in a significant drop in sales. Developers are facing challenges in moving inventory, leading to increased competition and, in some cases, price reductions to attract buyers. The slowdown is also affecting construction timelines, with some projects being delayed or put on hold as developers reassess market conditions. This cautious approach is contributing to a cooling of the once-booming new home market in the city.

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