In November, the GTA new home market saw more typical activity levels—both in new home sales and new project openings—after a relatively strong October, the Building Industry and Land Development Association (BILD) announced today.
There were 2,823 new homes sold in November, according to Altus Group*, BILD’s official source for new-home market intelligence. Condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units accounted for 2,454 new home sales in November, down 24 per cent from November 2017, but only 6 per cent less than the 10-year average. Single-family home sales, with 369 detached, linked and semi-detached houses and townhouses (excluding stacked townhouses) sold, were up eight per cent from last November but down 71 per cent from the 10-year average.
Remaining inventory increased month over month, to 16,797 units, comprised of 11,254 condo apartment units and 5,543 single family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.
“The condominium apartment market in the GTA is finishing off the year on a stronger note than it started,” said Patricia Arsenault, Altus Group’s Executive Vice President, Data Solutions. “Both builders and buyers have re-engaged in stronger numbers in recent months, signalling that the downturn that followed record activity last year may be coming to an end.”
The benchmark price for both condo apartments and single-family homes increased slightly in November compared to the previous month. The benchmark price for condo apartments was $786,602, which was up 11.9 per cent over the last 12 months. The benchmark price for single-family homes was $1,150,823, down 5.9 per cent over the last 12 months.
Although the housing market continued to show signs of recovery in November, it will continue to operate below capacity until fundamental issues that are restricting supply and demand are addressed through government policy, according to David Wilkes, BILD President & CEO.
“The time for talk is done and our region needs action now to ensure we build the more than 50,000 new homes needed annually to support the GTA’s growing population,” said Mr. Wilkes. “Our industry is encouraged by the provincial government’s commitment to unlocking supply. We will continue to call on municipal governments to expedite approvals of new developments, and on the federal government to undo the negative effects of the outdated stress test on consumers’ ability to purchase homes.”