Toronto’s Real Estate Faces Reset Not Total Collapse

Toronto’s real estate market is going through a tough time. Home prices are falling, construction costs are high, and too many homes are being built without enough people to buy them. Because of this, many builders are facing money problems, and some housing projects are being taken over by the courts. But experts say this is not a crash. They believe it's just a normal part of the real estate cycle, something that happens from time to time.

On June 18, 2025, a major real estate meeting was held in Toronto. Around 250 people came together, including builders, lawyers, bankers, and real estate experts. They talked about the current situation, shared their thoughts, and discussed how to deal with the growing number of unfinished or troubled housing projects in the city.

Many speakers at the meeting said the market is slowing down but is not collapsing. Some experts explained that many big builders still have good bank support and strong partnerships, so they are able to keep going even during this slow period. One speaker said this situation is not as bad as the early 1990s, when the market was hit much harder. Others said they believe the market will recover, but it may take a few years—possibly three to five.

Another concern raised at the meeting was about people who have already paid deposits for new homes that are now delayed or canceled. If the builder goes out of business, many buyers could lose their deposits. Some protection is offered through a company called Tarion, but it’s limited. For example, someone buying a condo might only get $20,000 back if the project is canceled, even if they paid a lot more. For houses, the maximum refund is 10% of the price, up to $100,000. Any money paid for upgrades, like special flooring or extra features, usually isn’t refunded. Many buyers are shocked when they find out that they won’t get all their money back.

One way to deal with troubled projects is through something called receivership. This happens when the courts step in and give control of the project to a new team. That new team then tries to finish the building. While receivership is not a perfect solution, it can help bring order to a project that’s in big trouble. With a fresh team, new money, and better planning, some stalled buildings can be completed after all.

An example shared at the meeting was a tall building at One Bloor West. The original developer ran into trouble, but a new builder, Tridel, was brought in through the receivership process. That helped the project move forward in a more organized way. A lawyer explained that the new team is also saving money each month, compared to the earlier, more expensive construction plans.

People at the meeting agreed that good teamwork, open information, and strong planning are needed to fix these problems and protect both builders and buyers. Even though the real estate market is going through a hard time, it’s not the end. With patience and smart solutions, things can improve.