GTA new home sales remain low in January, but months ahead give hope

TORONTO – The Building Industry and Land Development Association (BILD) is reporting Greater Toronto Area (GTA) new home sales stayed low in January, but there is a silvering lining.

With prices low and inventory steady, these conditions create a unique buying opportunity, a release states.

There were 347 new home sales in January which was down 40 per cent from January 2024 and 77 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.

“January 2025 new home sales across the GTA recorded a near record low,” said Edward Jegg, research manager at Altus Group, in a statement. “Despite a further Bank of Canada cut, excessive inventory and falling prices, GTA new home buyers are nowhere to be found.”

Condominium apartments, including units in low, medium and highrise buildings, accounted for 101 units sold in the GTA in January, down 58 per cent from January 2024 and 88 per cent below the 10-year average.

There were 246 single-family home sales in the GTA in January, down 27 per cent from January 2024 and 63 per cent below the 10-year average.

“With spring on the horizon, now is a prime time for new home buyers to step into the market. Prices have dropped approximately 20 per cent from the peak in 2022, and with interest rates easing, buyers have a unique opportunity to secure a new home at a favorable price,” said Justin Sherwood, senior vice-president of communications, research, and stakeholder relations.

“However, it is important to recognize that the ‘cost to build’ a new home remains high, due to fixed factors like labour and material costs. This means we are likely at the floor on prices. With current inventory levels, the market is also offering more choice than ever, but this combination of lower prices and reduced interest rates may not last long. For buyers, now is an ideal time to act before conditions shift again.”

Benchmark prices decreased in January for both single-family homes and condominium apartments in the GTA compared to the previous year. The benchmark price for new condominium apartments was $1,015,231, which was down 3.5 per cent over the last 12 months. The benchmark price for new single-family homes was $1,552,846, which was down 1.2 per cent over the last 12 months.