In March, GTA new home sales saw a change from the breakneck pace of the past few months, according to the Building Industry and Land Development Association (BILD).
There were 4,115 total new home sales in March, which was down 21 per cent from March 2021 but still 12 per cent above the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.
“Total new home sales remained relatively strong in March,” said Edward Jegg, Research Manager at Altus Analytics, Altus Group. “But signs of slowing are emerging, as higher interest rates alongside record prices start to impact demand.”
Sales of new condominium apartment units, including units in low, medium and high-rise buildings, stacked townhouses and loft units, with 3,277 units sold in March, were down 7 per cent from March 2021 and 34 per cent above the 10-year average.
New single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 838 units sold in March, which was down 50 per cent from March 2021 and 32 per cent below the 10-year average.
Despite the fact that nine condominium apartment projects opened in March, demand outpaced supply and condominium apartment remaining inventory fell year-over-year for the 10th consecutive month, to 7,220 units. Remaining inventory of single-family homes, at 830 units, was more than 50 per cent off from last March’s already low level. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.
The benchmark price for new condominium apartments reached a record price of $1,252,515 in March, which was up 17.7 per cent over the last 12 months. The benchmark price for new single-family homes was $1,838,396, which was slightly less than February’s record high, but still up 27.3 per cent over the last 12 months.
“Although new home sales eased in March compared to the exceptionally strong pace of the past few months, demand continued to outpace the supply of new homes, leaving the region with an inventory shortfall,” said Dave Wilkes, BILD President & CEO. “We cannot let short-term market variations mask the root causes of the housing supply and affordability challenge in the GTA. We need to keep our eyes on the long-term solution—building more new homes.”
With more than 1,200 member companies, BILD is the voice of the home building, land development and professional renovation industry in the Greater Toronto Area. The building and renovation industry provides more than 231,000 jobs in the region and $26.9 billion in investment value. BILD is proudly affiliated with the Ontario and Canadian Home Builders’ Associations.
View the full March New Homes Monthly Market Report