GTA new home market quiet in August: BILD

The Building Industry and Land Development Association (BILD) has reported that the new housing market in the Greater Toronto Area (GTA) experienced slow activity in August 2023.

By Kevin Cabral from Toronto, Canada – Mississauga Waterfront, via Wikimedia Commons

The Building Industry and Land Development Association (BILD) recently reported that the Greater Toronto Area’s (GTA) new housing market experienced slow activity in August.

According to Altus Group, BILD’s primary provider of new housing market data, there were 711 new home sales in August. This marked a 52 per cent increase compared to August 2022 but was notably 63 per cent below the ten-year average. It stands as the second-lowest August for new home sales since Altus Group commenced monitoring in 2000.

“While August is typically a slower buying month, the return of the interest rate hikes further dampened GTA new homes sales,” said Edward Jegg, research manager at Altus Group.

In August, there were 443 condominium apartment sales, including units in low, medium, and high-rise buildings, stacked townhouses, and loft units. This marked a 15 per cent increase compared to August 2022 but remained 66 per cent below the 10-year average.

Meanwhile, single-family home sales, which encompass detached, linked, semi-detached houses, and townhouses (excluding stacked townhouses), reached 268 in August. This was a substantial 227 per cent increase from August 2022 but remained 56 per cent below the 10-year average.

The total remaining inventory of new homes decreased from the previous month to 16,139 units. This inventory included 14,242 condominium apartment units and 1,897 single-family lots, equating to 13.7 months and 4.5 months of inventory, respectively, based on the average sales for the past 12 months. A balanced market typically maintains 9-12 months of inventory. This remaining inventory includes units in preconstruction projects, projects currently under construction, and completed buildings.

“Interest rates remain a barrier for prospective new home buyers in the GTA,” said Justin Sherwood, SVP communications and stakeholder relations at BILD. “However, the relatively strong sales of single-family homes in August demonstrate that municipalities need to enable the building of a mix of housing types to make sure families can find the homes they need when more typical market conditions return.”

In August, there was a modest uptick in benchmark prices when compared to the preceding month. The benchmark price for new condominium apartments stood at $1,089,012, representing an 8.5 per cent decrease over the past year. Similarly, the benchmark price for new single-family homes was $1,726,092, reflecting a 7.3 per cent decline over the previous 12 months.

You might also like