Robust employment and population growth impelled the market's acceleration
The Greater Toronto Area saw its strongest February since 2004 in terms of new single-family home sales, according to the Building Industry and Land Development Association.
Citing data from Altus Group, BILD said that the region had 2,247 new single-family home transactions last month. This was a remarkable 228% higher on an annual basis, and exceeded the market’s 10-year average by 44%.
Meanwhile, new condominium apartment sales were at 2,418 deals closed, up by 197% year-over-year and 48% above the 10-year average. Overall sales activity of new homes in the GTA for February 2020 was at 4,665 transactions, 211% greater annually and 57% higher than the 10-year average.
“Prior to the uncertainty due to the COVID-19 situation, the new home sector in the GTA was on track for a strong sales performance in 2020,” Altus Group executive vice president for data solutions Patricia Arsenault said. “Low mortgage rates were triggering the release of pent-up demand that had been building on the back of strong employment and population growth, which helped boost February sales.”
“Following on a month of strong new home sales in February, our industry and our customers are facing a time of challenges and uncertainty due to COVID-19,” BILD president and CEO David Wilkes added. “We are working diligently to coordinate responses with provincial and municipal authorities, protect workers and customers and ensure that we continue to fulfil our responsibilities to new home buyers. One of those responsibilities is building enough homes to top up depleted inventory and ensure our region’s new home supply keeps up with demand.”
