New homes sales in the GTA were down 76 per cent from February 2022 and 69 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence.
According to reports, this was the second lowest number of new homes sold in February since Altus Group began tracking in 2000.
Only 225 single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), were sold. The sales were down 65 per cent from February 2022 and 81 per cent below the 10-year average.
Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 697 units sold in February, down 78 per cent from February 2022 and 61 per cent below the 10-year average.
“Builders have been ramping up inventory, particularly in the new condominium apartment sector, in anticipation of a stronger spring market,” said Edward Jegg, Research Manager with Altus Group. “As we move into spring, it appears that we may be seeing the floor in the market, which may overcome buyers’ recent hesitancy brought about by the run-up of interest rates and other economic concerns.”
With the launch of 7 condominium apartment projects in February, total new home remaining inventory increased compared to the previous month, to 14,621 units, the highest level in more than 2 years.
This included 13,031 condominium apartment units and 1,590 single-family units, representing 9.3 months and 5.2 months of inventory respectively, based on average sales for the last 12 months. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings. A balanced market has 9-12 months of inventory.
“Housing inventory has been rising, which represents an opportunity for some new home buyers,” said Dave Wilkes, BILD President & CEO. “But it would be a mistake to assume that we have overcome the structural challenges that hamper housing supply in the GTA. All levels of government must work with industry to implement the changes necessary to meet the ambitious goal of building 1.5 million new homes in a decade, the number that Ontario’s Housing Affordability Task Force has called for to address the province’s housing supply crisis.”
The benchmark price for new single-family homes increased in February compared to the previous month, to $1,759,043, which was down 5.4 per cent over the last 12 months. The benchmark price for new condominium apartments decreased in February compared to the previous month, to $1,113,164, which was down 5.5 per cent over the last 12 months.