Greater Toronto Area, September 21, 2023 – The GTA new home market was slow in August, the Building Industry and Land Development Association (BILD) announced today.
There were 711 new home sales in August, which was up 52 per cent from August 2022 and 63 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence. It was the second lowest August for new home sales since Altus Group began tracking in 2000.
“While August is typically a slower buying month, the return of the interest rate hikes further dampened GTA new homes sales,” said Edward Jegg, Research Manager at Altus Group.
Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 443 units sold in August, up 15 per cent from August 2022 and 66 per cent below the 10-year average.
There were 268 single-family home sales in August, up 227 per cent from August 2022 and 56 per cent below the 10-year average. Single-family homes include detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).
Total new home remaining inventory decreased compared to the previous month, to 16,139 units. It included 14,242 condominium apartment units and 1,897 single family lots, representing 13.7 months and 4.5 months of inventory respectively, based on average sales for the last 12 months. A balanced market has 9-12 months of inventory. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.
“Interest rates remain a barrier for prospective new home buyers in the GTA,” said Justin Sherwood, SVP Communications & Stakeholder Relations at BILD. “However, the relatively strong sales of single-family homes in August demonstrate that municipalities need to enable the building of a mix of housing types to make sure families can find the homes they need when more typical market conditions return.”
Benchmark prices increased slightly in August compared to the previous month. The benchmark price for new condominium apartments was $1,089,012, which was down 8.5 per cent over the last 12 months. The benchmark price for new single-family homes was $1,726,092, which was down 7.3 per cent over the last 12 months.
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.
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For additional information or to schedule an interview, contact Justin Sherwood at jsherwood@bildgta.ca or 416-371-6005.
*Altus Group should be credited as BILD’s official source of new home market intelligence.
