TORONTO — New home sales were very slow in September with sales well below the 10-year average, but inventory rose as builders brought more condominium apartment projects to market according to Altus Group.
Sales of new condominium apartments, including units in low, medium and highrise buildings, stacked townhouses and loft units, with 289 units sold, were down 89 per cent from September 2021 and 84 per cent below the 10-year average, reported Altus Group, the Building Industry and Land Development Association’s source for new home market intelligence.
Single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 45 units sold, down 96 per cent from last September and 96 per cent below the 10-year average, indicates a release.
Total new home remaining inventory increased to 11,900 units compared to the previous month, comprised of 10,291 condominium apartment units and 1,609 single-family lots, representing 4.4 months and 3.1 months of inventory respectively, adds the release. A balanced market would have nine to 12 months of inventory.
The benchmark price for new condominium apartments in September was up 11.8 per cent over the past 12 months at $1,159,455 and the benchmark price for new single-family homes was up 17.8 per cent over the last 12 months at $1,853,214.
“Monetary policy and rising interest rates have stalled the market,” said Dave Wilkes, BILD president and CEO in a statement. “Inflation in construction and labour costs, elevating government fees, taxes and charges and tight supply make significant price correction for new homes very unlikely. The solution remains significantly adding supply to the market and this requires a wholesale change to the way we regulate, tax and deliver new homes to the residents of the GTA.”