The GTA home market was up 211 per cent in February 2020 with 4,665 total new home sales — the highest number of new homes sold in February since 2002, according to Altus Group, BILD’s official source for new home market intelligence.
The number of sales also saw a 57 per cent increase above the 10-year average, and was the strongest February since 2004 for sales of new single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).
With 2,247 new single-family homes sold, sales were up 228 per cent from last February and 44 per cent above the 10-year average.
Sales of new condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, at 2,418 units sold, were up 197 per cent from February 2019 and 48 per cent above the 10-year average. It was the second strongest February of the past 40 years for new condominium apartment sales, after the record high of February 2017.
“Prior to the uncertainty due to the COVID-19 situation, the new home sector in the GTA was on track for a strong sales performance in 2020,” said Patricia Arsenault, Altus Group’s Executive Vice-President, Data Solutions. “Low mortgage rates were triggering the release of pent-up demand that had been building on the back of strong employment and population growth, which helped boost February sales.”
In February, the benchmark price for new condo apartments was $961,268, which was up 21.3 per cent over the last 12 months, and the benchmark price for new single-family homes was $1,097,987, which was down 2.2 per cent over the last 12 months.
Total new home remaining inventory at the end of February was 17,199 units, representing about five months of inventory at the pace of sales in the past 12 months, well below the longer-term average of about eight months. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.
“Following on a month of strong new home sales in February, our industry and our customers are facing a time of challenges and uncertainty due to COVID-19,” said David Wilkes, BILD President & CEO. “We are working diligently to coordinate responses with provincial and municipal authorities, protect workers and customers and ensure that we continue to fulfil our responsibilities to new home buyers. One of those responsibilities is building enough homes to top up depleted inventory and ensure our region’s new home supply keeps up with demand.”