Greater Toronto Area, June 28, 2023 – The GTA new home market gained momentum in May, registering the first year-over-year increase in more than a year, the Building Industry and Land Development Association (BILD) announced today.
There were 3,109 new home sales in May, which was up 22 per cent from May 2022 and 10 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence.
Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 1,976 units sold in May, down 3 per cent from May 2022 and 14 per cent below the 10-year average.
There were 1,133 single-family home sales in May, up 123 per cent from May 2022 and 3 per cent below the 10-year average. Single-family homes include detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).
“GTA new home sales climbed higher in May as buyers grew accustomed to current market conditions,” said Edward Jegg, Research Manager with Altus Group. “Builders have been replenishing supply and benchmark prices have softened.”
May’s total new home remaining inventory, which includes units in preconstruction projects, in projects currently under construction, and in completed buildings, was 15,346 units. Thanks to 13 high-rise project openings, remaining inventory included 13,867 condominium apartment units. This represents approximately 13 months’ worth of inventory, based on average sales for the last 12 months. The remaining inventory for single-family homes was 1,479 units, representing approximately 4.5 months’ worth of inventory. A balanced market has 9-12 months of inventory.
The benchmark price for new condominium apartments was $1,097,747, which was down 6.7 per cent over the last 12 months. The benchmark price for new single-family homes was $1,736,348, which was down 4.3 per cent over the last 12 months.
“The GTA new home market has regained some of its strength in the last couple of months, proving that demand in the region hasn’t gone anywhere,” said Dave Wilkes, BILD President & CEO. “If that demand is to be met with the housing supply and choice that residents need, all levels of government must make housing a priority. The provincial government has set the framework to support the building of 1.5 million new homes within a decade, and we are heartened to see the efforts many GTA municipalities are making toward implementing policies that will make it easier to add housing. We would like to see the federal government do its part by enabling housing-supportive infrastructure and being mindful of the impacts of monetary policy on new home buyers.”
With 1,200 member companies, BILD is the voice of the home building, residential and non-residential land development and professional renovation industries in the Greater Toronto Area. The building and renovation industry provides 256,000 jobs in the region and $39.3 billion in investment value. BILD is affiliated with the Ontario and Canadian Home Builders’ Associations.
For additional information or to schedule an interview, contact Justin Sherwood at email@example.com or 416-371-6005.
*Altus Group should be credited as BILD’s official source of new home market intelligence.