GTA new home market continues flat in November; increase over prior year
Toronto, Dec. 21, 2023 (GLOBE NEWSWIRE) — Greater Toronto Area, December 21, 2023 – GTA new home sales were flat again in November, maintaining gains since the summer months, but exceeding the lows of November 2022, the Building Industry and Land Development Association (BILD) announced today.
There were 1,694 new home sales in November, which was up 13 per cent from November 2022 and 54 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence.
“The inventory of new homes available to purchase shrank in November,” said Edward Jegg, Research Manager with Altus Group. “But with sales slowing, that inventory will last longer, now taking nine months to absorb.”
Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 1,310 units sold in November, up seven per cent from November 2022 and 51 per cent below the 10-year average.
There were 384 single-family home sales in November, up 41 per cent from November 2022 and 62 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 compared to the previous month, to 20,760 units. It included 17,283 condominium apartment units and 3,477 single-family dwellings. This represents a combined inventory level of nine months, based on average sales for the last 12 months. The GTA is on the cusp of a balanced market from a month’s inventory perspective. The last time this level was attained was December 2015. A balanced market has 9-12 months of inventory. Remaining inventory includes units in pre-construction projects, in projects currently under construction and in completed buildings.
“This slow pace of sales is entirely due to current interest rates,” said Justin Sherwood, SVP Communications & Stakeholder Relations at BILD. “We are at a pivotal time in the market. The GTA population is expanding and we need housing, but slower sales today will lead to slower housing starts in the immediate future, which will hamper new supply coming to market. With total inventory actually decreasing month over month, the balanced market from a month’s inventory perspective is a factor of low sales, not more product coming to market. We cannot be lulled into a false sense of security because when rates moderate and sales pick up we will be right back into a supply crunch.”
Benchmark prices decreased in November for single-family homes and increased for condominium apartments compared to the previous month. The benchmark price for new condominium apartments was $1,040,295, which was down 7.3 per cent over the last 12 months. The benchmark price for new single-family homes was $1,594,036, which was down 8.5 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.
For additional information or to schedule an interview, contact Justin Sherwood at [email protected] or 416-371-6005.
*Altus Group should be credited as BILD’s official source of new home market intelligence.
CONTACT: Justin Sherwood Building Industry and Land Development Association (BILD) 4163716005 [email protected]
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