TORONTO — The GTA new home market slowed down considerably in July in response to the interest rate hike, reported the Building Industry and Land Development Association (BILD).
Rising interest rates left prospective buyers cautious during what is already typically a quiet month for new home sales, states a BILD release.
According to Altus Group, BILD’s official source for new home market intelligence, there were 1,190 new home sales in July, which was down 18 per cent from July 2022 and 50 per cent below the 10-year average.
Condominium apartments accounted for 828 units sold in July, down 39 per cent from July 2022 and 50 per cent below the 10-year average, which is the lowest number of condominium apartments sold in July in 23 years.
There were 362 single-family home sales in July, up 281 per cent from July 2022 but 51 per cent below the 10-year average.
Total new home remaining inventory inched up in July from the previous month’s total, to 16,683 units, indicates the release, adding remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.
Benchmark prices softened with slowing sales and rising inventory. The benchmark price for new condominium apartments was $1,084,768, which was down nine per cent over the last 12 months and the price for new single-family homes was $1,673,696, down 13.5 per cent over the last 12 months.
“It is time the federal government recognized its role in helping provinces, municipalities and the industry meet housing demand pressures for which its own policies and federal institutions are in part responsible,” said Dave Wilkes, BILD president and CEO, in a statement. “The measures within the government’s scope that can help with affordability and new housing supply include deferring HST on purpose-built rentals, helping municipalities financially to deliver infrastructure that supports housing, and indexing the thresholds for the GST/HST new housing rebate. We call on the federal government to act with the urgency the situation demands.”
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