GTA new home market slows in July in response to rate hike

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Toronto, ON, Aug. 23, 2023 (GLOBE NEWSWIRE) — The GTA new home market slowed down considerably in July, as rising interest rates left prospective buyers cautious during what is already typically a quiet month for new home sales, the Building Industry and Land Development Association (BILD) announced today.

There were 1,190 new home sales in July, which was down 18 per cent from July 2022 and 50 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence.

“GTA new home sales slumped in July,” said Edward Jegg, Research Manager at Altus Group. “The latest interest rate hikes have pushed many buyers to the sidelines again as affordability continues to deteriorate.”

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Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 828 units sold in July, down 39 per cent from July 2022 and 50 per cent below the 10-year average. It was the lowest number of condominium apartments sold in July in 23 years.

There were 362 single-family home sales in July, up 281 per cent from July 2022 but 51 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 inched up in July from the previous month’s total, to 16,683 units. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

With slowing sales and rising inventory, benchmark prices softened. The benchmark price for new condominium apartments was $1,084,768, which was down 9 per cent over the last 12 months. The benchmark price for new single-family homes was $1,673,696, which was down 13.5 per cent over the last 12 months.

“It is time the federal government recognized its role in helping provinces, municipalities and the industry meet housing demand pressures for which its own policies and federal institutions are in part responsible,” said Dave Wilkes, BILD President & CEO. “The measures within the government’s scope that can help with affordability and new housing supply include deferring HST on purpose-built rentals, helping municipalities financially to deliver infrastructure that supports housing, and indexing the thresholds for the GST/HST new housing rebate. We call on the federal government to act with the urgency the situation demands.”

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 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) 416-371-6005 [email protected] 

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