GTA new home market strong in May

Inventory of new homes hits record lows with only three month supply

The Greater Toronto Area new home market continued strong in May, with total sales and condominium apartment sales above the 10-year average, the Building Industry and Land Development Association (BILD) announced today.

Total May new home sales, with 3,661 units sold, were 5 per cent above the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.

Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 2,396 new home sales in May, which was 10 per cent above the 10-year average.

Sales of new single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), with 1,265 units sold in May, were 3 per cent below the 10-year average.

“While sales of new condominium apartments were lower in May than the frenzied pace of the previous two months, they were still above the 10-year average for May as demand remains buoyant and activity settles into more sustainable levels,” said Ryan Wyse, Altus Group’s Manager, Analytics, Data Solutions. “Buyers continue to be attracted to new openings, with about half of the newly released units available for purchase before the last 10 days of May selling within the month.”

Total new home remaining inventory was 12,555 units in May. That number represents 3.3 months’ worth of inventory based on the current pace of sales but a balanced market would have 9 to 12 months of inventory. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.

“The low inventory levels reported in the May data underline the need for GTA municipalities to address chronic shortages of housing supply,” said Dave Wilkes, BILD President and CEO. “Municipalities need to speed up approvals of shovel-ready projects, and as we look ahead to continued population growth in the GTA, they need to evaluate all aspects of the development approvals process to ensure that the new homes the region needs are being built in a timely manner.”

The benchmark price for new condominium apartments increased in May compared to the previous month, to $1,063,973, which was up 8 per cent over the last 12 months. The benchmark price for new single-family homes decreased compared to the previous month, to $1,380,491, which was up 24.4 per cent over the last 12 months.

May New Home Sales by Municipality:

May 2021 Condominium Apartments Single-family Total
Region 2021 2020 2019 2021 2020 2019 2021 2020 2019
Durham 144 53 38 352 131 231 496 184 269
Halton 112 5 474 118 83 144 230 88 618
Peel 141 56 700 479 111 278 620 167 978
Toronto 1,593 229 1,357 22 11 36 1,615 240 1,393
York 406 65 1,077 294 144 257 700 209 1,334
GTA 2,396 408 3,646 1,265 480 946 3,661 888 4,592
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