New report shows substantial declines in sales numbers last month
The Greater Toronto Area (GTA) new home market saw sales activity decline by 76% annually in February, down to a level 69% lower than the region’s 10-year average, according to Altus Group and the Building Industry and Land Development Association.
The market saw a total of 922 new home sales last month, the second lowest number of new homes sold in February since tracking began in 2000.
“Only 225 single-family homes, including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses), were sold in February, down 65% from February 2022 and 81% below the 10-year average,” the market report stated. “It was the lowest level of single-family home sales for February since Altus Group began tracking.”
Condo sales totalled 697 units, which was 78% lower annually and 61% lower than the 10-year average for the asset class.
Total inventory saw its highest levels in more that two years, at 14,621 units. Among these are 13,031 condo apartment units and 1,590 single-family units, representing 9.3 months and 5.2 months of inventory, respectively.
“Builders have been ramping up inventory, particularly in the new condominium apartment sector, in anticipation of a stronger spring market,” said Edward Jegg, research manager at Altus Group. “As we move into spring, it appears that we may be seeing the floor in the market, which may overcome buyers’ recent hesitancy brought about by the run-up of interest rates and other economic concerns.”
“Housing inventory has been rising, which represents an opportunity for some new home buyers,” added Dave Wilkes, president and CEO of BILD. “But it would be a mistake to assume that we have overcome the structural challenges that hamper housing supply in the GTA. All levels of government must work with industry to implement the changes necessary to meet the ambitious goal of building 1.5 million new homes in a decade.”
Benchmark prices stood at around $1.759 million for new single-family homes (down by 5.4% annually) and at around $1.113 million for new condo apartments (down by 5.5%).
