The lower demand was especially apparent in the single-family home segment
The Greater Toronto Area new home market saw a substantial annual deceleration of 89% in September, with overall sales veering significantly below (84%) the 10-year average, according to Altus Group and the Building Industry and Land Development Association.
The slowed demand was especially apparent in the single-family home segment, with sales plummeting by 96% on a year over year basis.
“Monetary policy and rising interest rates have stalled the market,” said Dave Wilkes, president and CEO of BILD. “Inflation in construction and labour costs, elevating government fees, taxes and charges and tight supply make significant price correction for new homes very unlikely.”
Read more: What’s next for Toronto’s once-sizzling housing market?
“September new home sales were quite low,” added Edward Jegg, research manager at Altus Group. “However, inventory rose as builders brought more condominium apartment projects to market.”
Total inventory stood at 11,900 units as of the end of September. Condos accounted for 10,291 units (4.4 months of inventory), while single-family properties represented 1,609 listings (3.1 months).
The benchmark price stood at around $1.159 million for new condos (up by 11.8% annually) and at $1.853 million for single-family homes (up by 17.8%).
