The new home market in the Greater Toronto Area is gradually improving as March sales increased slighting higher than in February.
The latest report from Altus Group, via the Building Industry and Land Development Association (BILD), is forecasting continued growth ahead. Though sales remain below the 10-year average, there is optimism more buyer’s will eventually trickle back to the market.
New home sales in March
Overall, there were 1,277 sales in March, down 70 per cent from March 2022 and 65 per cent below the 10-year average. For condo units in low- to high-rise buildings, stacked townhouses and and loft units, 893 units sold in March, compared to 3,341 last March. The majority sold within Toronto followed by the Durham and Peel regions. Sales in the category are 63 per cent below the 10-year average. New homes in the single-family category recorded 384 sold, down by 57 per cent since last March.
The remaining inventory was lower than February at 14,479 units, but up substantially from last year’s record low in March. It included 12,887 condominium apartment units (the majority of which are in pre-construction projects and about half as much in projects under construction) and 1,592 single-family units, representing about 10.5 months and six months of inventory respectively, based on average sales for the last 12 months.
“Overall, the new home market remains poised for an upswing as inventory levels are robust and pricing crawls higher,” said Edward Jegg, research manager with Altus Group. “With interest rates holding fast and the resale market strengthening, buyers have begun to re-emerge from the sidelines.”
New home prices
The price of new condominium apartments increased in March compared to the previous month, to $1,117,867. This was down 10.8 per cent over the last 12 months. For single-family homes, the average price is down 2.1 per cent over the year, but still rose in March to $1,799,971.
“Sales of new homes may have been muted for the past few months due to short-term market conditions, but demand will inevitably return as GTA families resume looking for the homes they need,” said BILD President & CEO Dave Wilkes.
He said the recent introduction of Ontario’s Bill 97, the Helping Homebuyers, Protecting Tenants Act, and consulting on the provincial policy statement, which includes land use planning, will ease steps to bring more housing supply to fruition.
Photo by Maarten van den Heuvel
A detailed look at Altus Group’s report can be accessed here.
