New home sales across the Greater Toronto Area in March continued the record low sales trend seen since January, the Building Industry and Land Development Association (BILD) announced on Monday.
Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 601 units sold in March, down 38 per cent from March 2023 and 73 per cent below the 10-year average, according to Altus Group.
Single-family home sales (524) rose 38 per cent from last March and 51 per cent below the 10-year average. Overall, 1,125 new home were sold, down 66 per cent below the 10-year average. Edward Jegg, research manager with Altus Group, said builders are announcing fewer new launches until sales begin to recover.
Average prices increased last month for both single-family homes and condo apartments compared to February The benchmark price for new condominium apartments was 1,054,906, which was down six per cent over the last 12 months and 16 per cent from the 2022 peak. The average price for new single-family homes was $1,594,951, down 11 per cent over the last 12 months and 18 per cent since the 2022 peak.
Total new home remaining inventory decreased compared to the previous month, to 19,508 units. It included 16,318 condominium apartment units and 3,190 single-family dwellings.
This represents a combined inventory level of 13.5 months, based on average sales for the last 12 months. This remains one of the highest inventory levels for new homes seen in the last decade and, when combined with the decrease of 16 to 18 per cent in the benchmark price since the peak in 2022. BILD said there is now much choice “due to high inventory levels, and that purchasing a pre-construction home today will allow buyers to lock in a price now, while benefiting from lower interest rates that may be on the horizon, when they close.”
“While the current situation is very beneficial for prospective new home buyers, it is a period of increased jeopardy for builders and developers that is becoming more critical with every passing day,” said Justin Sherwood, senior vice president of communications and stakeholder relations at BILD.
“At the very time when builders should be ramping up production, they cannot due to a combination of high interest rates, elevated construction costs and slow demand. This is becoming a very concerning situation and persistence of these market conditions risks future housing supply.”
