The new home market in the Greater Toronto Area began to normalize in April with sales starting to return to more traditional levels, the Building Industry and Land Development Association (BILD) announced.
There were 2,391 new home sales, which was down 35 per cent from April 2022 and 30 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.
Condominium apartments, including units in low, medium and high-rise buildings, stacked townhouses and loft units, accounted for 1,327 units sold in April, down 57 per cent from April 2022 and 39 per cent below the 10-year average.
GTA homebuyers returned to the market driving new home sales higher,” said Edward Jegg, research manager with Altus Group. “The fundamentals had pointed to a rebound in April and that strength is expected to continue through the spring market.”
Single-family home sales recorded 1,064 sales in April, up 81 per cent from April 2022 and 16 per cent below the 10-year average. These include detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).
Total new home remaining inventory was 14,928 units, slightly more than March 2023. It included 13,588 condominium apartment units and 1,340 single-family units, representing about 12 months and 4 months of inventory respectively, based on average sales for the last 12 months.
Remaining inventory includes units in pre-construction projects, those currently under construction, and in completed buildings. BILD states it is too early to suggest inventory levels have led to a sustained balanced market.
As of April, condo units average $1,102,904, down from March and also 7.3 per cent over the past 12 months. Single-family homes dipped, as well, to an average $1,768,456.
“In the short term, the impact of sales on new home inventory will be balanced by new project openings with numerous projects in the pipeline,” said BILD President and CEO Dave Wilkes. “However, longer term we cannot take our eye off what needs to be the singular focus of every municipality in the GTA—consistently adding sufficient housing supply. Failure to do so will simply result in inflationary pressures to the cost of new homes returning.”
Photo by Nextvoyage
