The GTA new home market was very slow in September, with overall sales well below the 10-year average and inventories low, but rising slightly, the Building Industry and Land Development Association announced today.
Sales of new condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, with 289 units sold, were down 89 per cent from September 2021 and 84 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence.
Single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 45 units sold, down 96 per cent from last September and 96 per cent below the 10-year average.
“September new home sales were quite low,” said Edward Jegg, Research Manager at Altus Group. “However, inventory rose as builders brought more condominium apartment projects to market.”
Total new home remaining inventory increased compared to the previous month, to 11,900 units, comprised of 10,291 condominium apartment units and 1,609 single-family lots, representing 4.4 months and 3.1 months of inventory respectively. A balanced market would have 9-12 months of inventory.
The benchmark price for new condominium apartments in September was $1,159,455, which was up 11.8 per cent over the last 12 months and the benchmark price for new single-family homes was $1,853,214, which was up 17.8 per cent over the last 12 months.
“Monetary policy and rising interest rates have stalled the market,” said Dave Wilkes, BILD President & CEO. “Inflation in construction and labour costs, elevating government fees, taxes and charges and tight supply make significant price correction for new homes very unlikely. The solution remains significantly adding supply to the market and this requires a wholesale change to the way we regulate, tax and deliver new homes to the residents of the GTA.”
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.