GTA new home market shows encouraging signs in March

The GTA new home market continued to show some encouraging signs in March, according to the Building Industry and Land Development Association (BILD).Total new home sales, with 2,314 new homes sold, were up 20 per cent from last year, though still 36 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence. There were 886 new single-family homes sold in March, including detached, linked and semi-detached houses and townhouses, up from last March’s low of 295, but still 38 per cent below the 10-year average. This is the fifth month in a row that new single-family home sales have increased year-over-year.Sales of new condominium units in low-, medium- and highrise buildings, stacked townhouses and loft units, with 1,428 units sold, were down 13 per cent from March 2018 and 34 per cent below the 10-year average.

Broader availability

“The desire to own a new single-family home never went away, but many would-be buyers have been taking a wait-and-see approach in the past two years,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “While the affordability of single-family homes in general remains a challenge, the broader range of product at more favourable price points that is starting to emerge has attracted some of these buyers into the market.”The benchmark prices of both single-family homes and condominium apartments moderated slightly compared to the previous month. The benchmark price of new single-family homes was $1.12 million, down 7.6 per cent over the last 12 months, while the benchmark price of new condominium units was $780,839, up 5.1 per cent over the last 12 months.

Affordability still an issue

“Despite the recent slight moderation in new home prices, affordability is an issue for many people in the GTA, as we have learned from our Building Answers campaign, which encourages residents to ask questions about development,” says David Wilkes, BILD president and CEO. “Affordability will continue to be a challenge until structural remedies are introduced to fix the GTA’s housing supply shortage. It is clear that we all – industry, government and public – need to look for ways to build more housing faster and to mitigate unnecessary delays and costs on new housing.”Remaining inventory in March included 11,744 condominium units and 5,054 single-family homes. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings. 

March new home sales by municipality

	Condominium units			Single-family homes			Total
Region	2019	2018	2017	2019	2018	2017	2019	2018	2017
Durham	35	14	188	173	66	209	208	80	397
Halton	70	64	110	107	59	296	177	123	406
Peel	84	99	197	307	126	366	391	225	563
Toronto	953	1,081	3,628	88	5	93	1,041	1,086	3,721
York	286	382	442	211	39	372	497	421	814
GTA	1,428	1,640	4,565	886	295	1,336	2,314	1,935	5,901

Source: Altus Group

RELATED READING

GTA builders launch public awareness campaignNew single-family home sales in the GTA jump in FebruaryDevelopment in the GTA