Overall sales figures fared poorly when compared to the region's 10-year averages
The Greater Toronto Area (GTA) new home market saw a slight uptick in March compared to the previous month, according to Altus Group and the Building Industry and Land Development Association.
The region saw a total of 1,277 new home sales in March. Despite the monthly gain, this figure was 70% lower than March 2022 and 65% below the 10-year average for the month.
Condo apartments represented 893 transactions in March, while single-family homes accounted for 384 sales.
However, BILD expressed optimism that the market will experience a renaissance in the very near future.
“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 Dave Wilkes, president and CEO of BILD.
The GTA’s total new home active inventory stood at 14,479 units, which was significantly higher than the record low seen in March 2022. Of this supply, condo apartments accounted for 12,887 units (10.5 months of inventory) while single-family homes represented 1,592 units (six months of inventory).
Benchmark prices settled at nearly $1.118 million for new condo apartments (down by 10.8% annually) and at $1.799 million for new single-family homes (down by 2.1%).
“Overall, the new home market remains poised for an upswing as inventory levels are robust and pricing crawls higher,” said Edward Jegg, research manager at Altus Group. “With interest rates holding fast and the resale market strengthening, buyers have begun to re-emerge from the sidelines.”
