Greater Toronto Area, July 24, 2023 – The GTA new home market was relatively quiet in June, with sales significantly below the 10-year average, the Building Industry and Land Development Association (BILD) announced today.
There were 2,526 new home sales in June, which was up 32 per cent from June 2022 but 30 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 1,957 units sold in June, up 11 per cent from June 2022 and 21 per cent below the 10-year average.
There were 569 single-family home sales in June, up 256 per cent from June 2022 but 49 per cent below the 10-year average. Single-family homes include detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).
“New home sales took a step back in June,” said Edward Jegg, Research Manager at Altus Group. “Increased supply eased pressure on prices but buyer hesitancy has returned.”
June’s total new home remaining inventory increased compared to the previous month, to 16,379 units. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.
Increased inventory had a softening impact on prices. The benchmark price for new condominium apartments was $1,090,494, which was down 8.4 per cent over the last 12 months. The benchmark price for new single-family homes was $1,716,467, which was down 6.9 per cent over the last 12 months.
“There is no doubt that the recent escalation in interest rates is pushing some prospective new home buyers to the sidelines,” said Dave Wilkes, BILD President & CEO. “Rising interest rates also delay the addition of much-needed supply to the market, because pre-construction sales are a crucial element in financing new housing. Thus, when the Bank of Canada continually raises interest rates, it is exacerbating Canada’s housing supply and affordability crisis.”
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.