The GTA new home market continued to show some encouraging signs in March, the Building Industry and Land Development Association (BILD) announced today.
Total new home sales, with 2,314 new homes sold, were up 20 percent from last year, though still 36 percent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence. There were 886 new single-family homes sold in March, including detached, linked, and semi-detached houses and townhouses, up from last March’s low of 295, but still 38 percent below the ten-year average. This is the fifth month in a row that new single-family home sales have increased year-over-year. Sales of new condominium apartments in low, medium, and high-rise buildings, stacked townhouses, and loft units, with 1,428 units sold, were down 13 percent from March 2018 and 34 percent below the ten-year average.
“The desire to own a new single-family home never went away, but many would-be buyers have been taking a wait-and-see approach in the past two years,” said Patricia Arsenault, Altus Group’s Executive Vice President, of Data Solutions. “While the affordability of single-family homes in general remains a challenge, the broader range of product at more favorable price points that is starting to emerge has attracted some of these buyers into the market.”
The benchmark prices of both single-family homes and condominium apartments moderated slightly compared to the previous month. The benchmark price of new single-family homes was $1,116,640, down 7.6 percent over the last 12 months, while the benchmark price of new condominium apartments was $780,839, up 5.1 percent over the last 12 months.
“Despite the recent slight moderation in new home prices, affordability is an issue for many people in the GTA, as we have learned from our Building Answers campaign, which encourages residents to ask questions about development,” said David Wilkes, BILD President & CEO. “Affordability will continue to be a challenge until structural remedies are introduced to fix the GTA’s housing supply shortage. It is clear that we all—industry, government, and public—need to look for ways to build more housing faster and to mitigate unnecessary delays and costs on new housing.”
The remaining inventory in March included 11,744 condominium apartment units and 5,054 single-family homes. The remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.
March New Home Sales by Municipality:
Source: Altus Group
