New home market sees steady prices, slower sales in July
Friday Nov 16th, 2018
Greater Toronto, Aug. 22, 2018 – Sales of new homes in the GTA slowed down in July while prices held steady, the Building Industry and Land Development Association (BILD) announced today.
Total July new home sales of 1,071 units were down 44 per cent from last July and down 55 per cent from the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence. Sales of new condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units, at 855 units sold, were down 52 per cent from July 2017 and down 40 per cent from the 10-year average.
Sales of new single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), at 216 units sold, were up 85 per cent from last July—a month that saw the lowest single-family home sales in decades, with 117 units sold—but still 77 per cent below the 10-year average.
The benchmark price of new condominium apartments was $774,759, up 16.5 per cent from last July, but virtually unchanged from last month. The benchmark price of new single-family homes was $1,142,574, down 13.2 per cent from last July and just 0.85 per cent above last month.
“New home sales in the GTA typically take a breather in the summer months compared to the spring,” explained Patricia Arsenault, Altus Group’s Executive Vice-President, Data Solutions. “This July was no exception, although minimal new project launches in July, along with declining affordability of new condominium apartments due to recent price escalation, amplified the June-to-July decline in sales somewhat this year.”
With only two projects opening in July, the total remaining new home inventory decreased to 14,784 units, comprised of 9,931 condo apartment units and 4,853 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.
“We are still seeing a shortfall in condo apartment inventory,” said David Wilkes, BILD President & CEO. “Given the current pace of sales, we should have nine to twelve months’ worth of inventory, but we only have five. We expect that more condo apartment product will become available in the fall.”
Mr. Wilkes added that affordability remains an issue for many buyers. “The prices of new homes are affected by, among other factors, the fees, taxes and charges added by all levels of government,” he said. “Municipalities have the most direct influence over affordability and supply of new housing, so leading up to the Oct. 22 municipal elections, we are inviting people to send an email to their local candidates, asking them to make housing a priority. Start by visiting www.buildforgrowth.ca.”
July New Home Sales by Municipality**:
Source: Altus Group
*Altus Group should be credited as BILD’s official source of new home market intelligence.
**Historical data are subject to revisions.