GTA new home market flat in November

TORONTO – The Building Industry and Land Development Association (BILD) reported GTA new home sales were flat again in November, maintaining gains since the summer months, but exceeding the lows of last November.

According to Altus Group, BILD’s official source for new home market intelligence, there were 1,694 new home sales in November, which was up 13 per cent from November 2022 and 54 per cent below the 10-year average.

The analysis also found:

• Condominium apartments, including units in low, medium and highrise buildings, stacked townhouses and loft units, accounted for 1,310 units sold in November, up seven per cent from November 2022 and 51 per cent below the 10-year average.
• There were 384 single-family home sales in November, up 41 per cent from November 2022 and 62 per cent below the 10-year average.
• Total new home remaining inventory decreased compared to the previous month, to 20,760 units. It included 17,283 condominium apartment units and 3,477 single-family dwellings. This represents a combined inventory level of nine months, based on average sales for the last 12 months.
• The GTA is on the cusp of a balanced market from a month’s inventory perspective. The last time this level was attained was December 2015. A balanced market has nine to 12 months of inventory.
• Benchmark prices decreased in November for single-family homes and increased for condominium apartments compared to the previous month. The benchmark price for new condominium apartments was $1,040,295, which was down 7.3 per cent over the last 12 months. The benchmark price for new single-family homes was $1,594,036, which was down 8.5 per cent over the last 12 months.

“This slow pace of sales is entirely due to current interest rates,” said Justin Sherwood, SVP communications and stakeholder relations at BILD, in a statement. “We are at a pivotal time in the market.  The GTA population is expanding and we need housing, but slower sales today will lead to slower housing starts in the immediate future, which will hamper new supply coming to market. With total inventory actually decreasing month over month, the balanced market from a month’s inventory perspective is a factor of low sales, not more product coming to market. We cannot be lulled into a false sense of security because when rates moderate and sales pick up we will be right back into a supply crunch.”