The region benefits from a surge brought about by pent-up demand
The Greater Toronto Area new home market saw a resurgence in September that essentially reversed three months of decline, according to new data from Altus Group and the Building Industry and Land Development Association.
A total of 1,885 new home sales transpired in the GTA in September, a level that was 303% higher than that seen during the same month last year and 32% below the 10-year average.
Condo apartments represented 1,290 of these transactions, up by 207% annually and 29% below the region’s 10-year average for the asset class. Single-family housing accounted for 595 sales, up by 1,140% annually and 37% below the 10-year average.
“September sales surged as pent-up demand pulled buyers from the sidelines,” said Edward Jegg, research manager at Altus Group. “Purchasers were lured by lower prices, rising inventory and easing concerns around future interest rate hikes.”
Paul Baron, President of the Toronto Regional Real Estate Board, emphasized that the housing market in Toronto may experience volatility in the short term due to uncertainty regarding interest rates.https://t.co/FCQ1dHu7Hx#mortgageindustry #housingmarket #interestrates
— Canadian Mortgage Professional Magazine (@CMPmagazine) September 9, 2023
Total new home inventory stood at 19,141 units, marking the first time since 2019 that inventory exceeded the region’s 10-year average. Representing a combined inventory level of nearly seven months, this stock included 16,342 condominium apartment units and 2,779 single-family lots.
The benchmark price for new condo apartments was approximately $1.037 million (down by 10.5% annually), while the benchmark price for new single-family homes was nearly $1.567 million (down by 15.6%).
