Greater Toronto Area, December 19, 2024 – Greater Toronto Area (GTA) new home sales remained low in November, with yet another month of sluggish sales which is consistent with the yearlong trend of low sales, stable physical inventory and price for 2024, the Building Industry and Land Development Association (BILD) announced today.
There were 759 new home sales in November which was down 55 per cent from November 2023 and 77 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence.
“The GTA new home market continued to languish in November 2024, registering a second consecutive record low for the month,” said Edward Jegg, Research Manager with Altus Group. “Another large cut in the Bank of Canada’s target rate should be welcomed news to buyers who have so far resisted returning to the new home market.”
Condominium apartments, including units in low, medium and high-rise buildings, accounted for 249 units sold in November, down 81 per cent from November 2023 and 90 per cent below the 10-year average.
There were 510 single-family home sales in November, up 32 per cent from November 2023 and 45 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 slightly compared to the previous month, to 21,971 units. This includes 17,168 condominium apartment units and 4,803 single-family dwellings. This represents a combined inventory level of 14.1 months, based on average sales for the last 12 months. Physical remaining inventory has been basically stable across 2024 with very little inventory added given the challenging economic environment.
“The GTA’s new home market is at a standstill, with prices softening and inventory holding steady throughout 2024, plus low and sluggish sales. The current ‘cost to build’ crisis is stalling the new home market,” said Justin Sherwood, SVP Communications, Research & Stakeholder Relations at BILD. “With housing starts in decline, government action to reduce the high level of government fees, taxes and charges on new homes is one of the most viable means to quickly address the challenge and get things moving again. The City of Vaughan’s recent decision to lower development charges is a crucial step, and other municipalities must follow suit.”
The Greater Toronto Area is grappling with a major ‘cost to build’ challenge. Rising construction costs, coupled with escalating government fees, taxes, and charges, have made it increasingly difficult to deliver new homes at a price point the market can absorb. This cost imbalance has led to a sharp decline in both sales and housing starts, which poses a serious threat to the region’s future housing supply.
Benchmark prices decreased slightly in November for both single-family homes and for condominium apartments compared to the previous year. The benchmark price for new condominium apartments was $1,017,664, which was down 2.2 per cent over the last 12 months. The benchmark price for new single-family homes was $1,557,486, which was down 2.3 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 Janis McCulloch at jmcculloch@bildgta.ca or 416-617-7994.
*Altus Group should be credited as BILD’s official source of new home market intelligence.
