The new home market in the Greater Toronto Area (GTA) continued to slow down in May, the Building Industry and Land Development Association announced Wednesday.

Sales of new condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, with 2,058 units sold, were down 31 per cent from May 2021 and 10 per cent below the 10-year average.

Single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 491 units sold, down 62 per cent from last May and 58 per cent below the 10-year average.

“GTA new homes sales eased in May as consumers deal with rising mortgage rates and growing economic concerns,” said Edward Jegg, research manager at Altus Analytics, Altus Group. “Inventory levels are moving higher but benchmark prices are showing resiliency.”

The benchmark price for new condominium apartments in May was $1,176,080, which was up 10.5 per cent over the last 12 months and the benchmark price for new single-family homes was $1,814,774, which was up 31.5 per cent over the last 12 months.

Total new home remaining inventory increased compared to the previous month, to 10,004 units, comprised of 8,050 condominium apartment units and 1,954 single family lots.

“While short term macro-economic trends point to an easing of housing demand in the coming months, failure to plan to ensure a consistent pipeline of new housing of all types will result in a future resurgence of the tight market conditions of the last few years,” said BILD President & CEO Dave Wilkes. “This was the pattern following the 2017 market correction and the introduction of the mortgage stress test. Given present projected population growth, it is prudent for governments and industry to use this time to collectively plan for another period of renewed demand.”