19th December 2024: The Toronto real estate market had another slow month in November, with many new homes sitting unsold. According to data from Altus Data for the Building Industry and Land Development Association (BILD), sales were down 55% compared to last November. Despite interest rate cuts by the Bank of Canada, demand has not picked up as expected, and many potential buyers are still waiting for home prices to fall.
In November, only 759 new homes sold, including 249 new condos and 510 single-family homes, which is 77% below the typical sales for November over the past 10 years. The condo market saw the biggest drop, with sales down 81% compared to last November and 90% below the 10-year average. On the other hand, single-family home sales were slightly better, up 32% from November 2023, but still 45% below the 10-year average.
Justin Sherwood from BILD said the market is split: single-family homes are seeing small signs of recovery, but condos are struggling. The condo sales this November were much lower than in November 2021, when there were over 4,300 sales.
Sherwood also noted that more people from the large millennial generation are now starting families, which might explain the higher interest in single-family homes. There are some signs the market is starting to shift, with overall sales rising for the second month in a row. New mortgage rules, aimed at helping first-time buyers, also came into effect recently.
Sherwood expects new home sales to pick up in early 2025, as interest rates continue to drop and new mortgage rules help more buyers. However, even though sales were slow in November, inventory stayed stable, with over 17,000 new condos and nearly 5,000 single-family homes still available.
Prices for new homes are slightly lower than last year. New condos are priced around $1.02 million (down 2.2%), and single-family homes are priced around $1.56 million (down 2.3%).
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