The new home market in the Greater Toronto Area experienced a slow month in January, according to the Building Industry and Land Development Association (BILD).
There were 567 new home sales, which was down 81 per cent from January 2022 and 70 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence. This was the lowest number of new homes sold in January since Altus Group began tracking in 2000.
Only 186 single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), were sold, down 70 per cent from January 2022 and 78 per cent below the 10-year average.
Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 381 units sold—the lowest level for January in 14 years. This was down 84 per cent from January 2022 and 64 per cent below the 10-year average.
“New home sales started 2023 on a very quiet note,” said Edward Jegg, research manager at Altus Group. “Developers, particularly in the condominium apartment sector, continue to bring new units to the market though buyers remain largely hesitant.”
With the launches of two large condominium apartment projects in January, total new home remaining inventory increased compared to the previous month, to 13,490 units, the highest level in two years. This included 11,869 condominium apartment units and 1,621 single-family units, representing 7.5 months and 4.8 months of inventory respectively, based on average sales for the last 12 months. A balanced market would have 9 to 12 months of inventory.
“We are seeing a modest increase in inventory, due to prospective home buyers sitting on the sidelines as a result of current monetary policy,” said BILD President & CEO Dave Wilkes. “But given the rate at which the population of the GTA and the province is growing, we need to build 1.5 million new homes in Ontario in a decade. We are committed to working with all levels of government to implement the changes necessary to meet this ambitious goal.”
The benchmark price for new single-family homes decreased in January compared to the previous month, to $1,730,359, which was down 2.3 per cent over the last 12 months. The benchmark price for new condominium apartments decreased in January compared to the previous month, to $1,127,192, which was down 2.0 per cent over the last 12 months.
