Quiet June for GTA new home market

TORONTO — The GTA new home market slowed in June and sales fell significantly below the 10-year average.

Altus Group, the Building Industry and Land Development’s official source for new home market intelligence, reported there were 2,526 new home sales in June, which was up 32 per cent from June 2022 but 30 per cent below the 10-year average.

Altus Group also found:

• Condominium apartments, including units in low, medium and highrise buildings, stacked townhouses and loft units, accounted for 1,957 units sold in June, up 11 per cent from June 2022 and 21 per cent below the 10-year average.
• There were 569 single-family home sales in June, up 256 per cent from June 2022 but 49 per cent below the 10-year average.
• June’s total new home remaining inventory – units in preconstruction, projects currently under construction and in completed buildings – increased compared to the previous month, to 16,379 units.
• Increased inventory had a softening impact on prices. The benchmark price for new condominium apartments was $1,090,494, which was down 8.4 per cent over the last 12 months.
• The benchmark price for new single-family homes was $1,716,467, which was down 6.9 per cent over the last 12 months.

“There is no doubt that the recent escalation in interest rates is pushing some prospective new homebuyers to the sidelines,” said Dave Wilkes, BILD president and CEO, in a statement. “Rising interest rates also delay the addition of much-needed supply to the market, because pre-construction sales are a crucial element in financing new housing. Thus, when the Bank of Canada continually raises interest rates, it is exacerbating Canada’s housing supply and affordability crisis.”