Tag Archives: benchmark price

oct2019_realestate_bild_h_fi

August new single-family home sales outpaced year-earlier levels for the 10th month in a row

Latest News


August new single-family home sales outpaced year-earlier levels for the 10th month in a row

It was a typically quiet August in the GTA new home market this year, according to the Building Industry and Land Development Association (BILD).

There were 1,400 new home sales in August, according to Altus Group, BILD’s official source for new home market intelligence. This was up 19 per cent from August 2018 but still 23 per cent below the 10-year average.

Condominium units in low-, medium- and highrise buildings, stacked townhouses and loft units accounted for 961 new home sales, down four per cent from August 2018 and 12 per cent from the 10-year average.

“August was the first month since March that new condo apartment sales didn’t exceed their 2018 level,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “Typically, very few new projects open in August, and this year there were actually none. This played a role in the slightly lower number of new condo sales compared to August last year.”

August saw a decrease in inventory compared to the previous month, to 16,529 units. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

Single-family home sales, with 439 detached, linked and semi-detached houses and townhouses (excluding stacked townhouses) sold, were up 143 per cent from last August, but still down 39 per cent from the 10-year average.

“New single-family home sales outpaced year-earlier levels for the 10th month in a row in August,” says Arsenault. “But the level of sales remains low in historical terms, with affordability of available product an issue for many would-be buyers.”

The benchmark price of new single-family homes in August was $1.08 million, down 4.1 per cent over the last 12 months. The benchmark price of new condominium apartments was $840,799, up 7.2 per cent over the last 12 months.

“It is encouraging to see sales of single-family homes increase as the market returns to more typical levels,” says BILD President and CEO David Wilkes. “However, we still have concerns that until fundamental adjustments are made to align supply with demand in the GTA housing market, we will continue to have affordability challenges.”

August new home sales by municipality, August 2019

Source: Altus Group


SHARE  

Featured Products


GTA new home market continues recent trends

GTA new home market continues recent trends

Latest News


GTA new home market continues recent trends

Benchmark price for available new single-family homes in January was $1,229,454, which was 19.6 per cent above January 2017.

Sales of new single-family homes in the GTA hit their lowest level for January since before 2000, the Building Industry and Land Development Association (BILD) announced last week.

Single-family homes, including detached, link and semi-detached houses and townhouses (excluding stacked townhouses) represented only 365 units out of the 1,251 new homes sold in January, according to Altus Group, BILD’s official source for new home market intelligence.

“The January data continues a trend we have seen in the GTA,” said David Wilkes, BILD president and CEO. “Our industry wants to meet consumer demand in terms of the mix and type of homes available, but we are constrained by government policy. Affordability and the lack of supply of single-family housing remain a challenge.”

In the meantime, condominium apartments in low, medium and highrise buildings, stacked townhouses and loft units accounted for 70.8 per cent of new home sales, with 886 units sold.

“New condominium apartment sales in January were in line with typical levels for this time of year,” said Patricia Arsenault, Altus Group’s executive vice president of Research Consulting Services. “New condos remain an attractive option for end-user buyers looking for more affordable homes, as well as for investors who are ensuring needed new rental supply continues to flow into a tight rental market.”

In January, the benchmark price for available new single-family homes was $1,229,454, which was 19.6 per cent above January 2017. The benchmark price for condominium apartments was $714,430, which was 40.8 per cent above last January.

The new home market saw a very slight increase in supply in January, to 11,750 units, from 11,397 units in December. This is still well below what is considered a healthy level. Supply of new housing is typically measured by the number of new homes available for purchase in builders’ inventories at the end of the month and includes units in pre-construction, under construction and completed projects. A healthy new home market should have nine to 12 months worth of inventory and right now inventory is at about three to four months, based on the pace of sales in the past 12 months.

“The GTA is expected to grow to 9.7 million people by 2041,” Wilkes said. “How are we going to house them? All levels of government and the building industry have a role to play in increasing housing supply and we need to work together to simplify approval processes, update zoning by-laws and service developable land so we can bring more homes to market.”


SHARE  

Featured Products