Greater Toronto Area, December 21, 2022 – The GTA new home market saw a quiet month in November, the Building Industry and Land Development Association announced today.
Total November new home sales of 1,330 units were down 74 per cent from November 2021 and 65 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence. It was the lowest level of new home sales for November since Altus Group began tracking in 2000.
Sales of new condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, with 1,053 units sold, were down 76 per cent from November 2021 and 61 per cent below the 10-year average. Single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 277 units sold, down 66 per cent from last November and 75 per cent below the 10-year average.
“November was another month of slow sales, allowing the new homes market to improve on fundamentals,” said Edward Jegg, Research Manager with Altus Group. “Looking at the single-family sector, average prices fell for a fourth month as lower sales and higher inventories from the start of the year have eased pressure.”
The benchmark price for new single-family homes in November was $1,741,828, which was up 3.7 per cent over the last 12 months and the benchmark price for new condominium apartments was $1,121,906, which was up 3.6 per cent over the last 12 months.
Thanks to a number of new condominium apartment openings, total remaining inventory rose in November compared to the previous month, to 13,799 units. Remaining inventory included 11,997 condominium apartment units and 1,802 single-family lots, representing 6.4 months and 4.4 months of inventory respectively. A balanced market would have 9-12 months of inventory.
“As inventories increase slightly, we see new home prices starting to moderate, which means the market is behaving as expected,” said Dave Wilkes, BILD President & CEO. “However, with continued high interest rates, hundreds of thousands of Canadians face the formidable challenge of finalizing financing on homes they bought during the pandemic. The federal government needs to be mindful of the impacts of its broad monetary policy on all homeowners, but especially new homeowners. The province and municipal governments, for their part, must maintain their focus on increasing housing supply.”
With more than 1,300 member companies, BILD is the voice of the home building, land development and professional renovation industry in the Greater Toronto Area. The building and renovation industry provides more than 231,000 jobs in the region and $26.9 billion in investment value. BILD is proudly 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.
