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GTA new home market understandably slow in April

GTA new home market understandably slow in April

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GTA new home market understandably slow in April

The GTA new home market saw record low new home sales numbers in April, according to the Building Industry and Land Development Association (BILD).

It was the lowest April for total new home sales, as well as single-family and condominium unit sales, since Altus Group, BILD’s official source for new home market intelligence, started tracking in 2000.

“As we expected, the April new home sales numbers reflect the impact of the COVID-19 pandemic on the GTA economy,” says David Wilkes, BILD president and CEO. “The good news is, the residential and commercial building and development industry, along with the professional renovations industry, is positioned to play a significant role in the recovery of our region and Ontario. In the coming weeks, we’ll be putting forward recommendations for all three levels of government that can accelerate the healing of our economy.”

A total of 771 new homes was sold in April, down 80 per cent from April 2019 and 78 per cent below the 10-year average. Single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 301 new home sales, down 62 per cent from last April and 79 per cent below the 10-year average.

Sales of new condominium suites, including units in low-, medium- and highrise buildings, stacked townhouses and loft units, at 470 units sold, were down 85 per cent from April 2019 and 78 per cent below the 10-year average.

“The plunge in new home sales in April came as both builders and potential buyers stepped back from the heated activity of the first quarter, adjusting to the new reality ushered in by COVID-19,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “Most planned new project launches were put on hold, sales programs for existing projects moved to virtual or by-appointment-only models, and short-term homebuying plans were disrupted by employment uncertainty, as well as the challenges of stay-at-home routines.”

Benchmark prices for both new condominium apartments and new single-family homes increased slightly in April, compared to the previous month. The benchmark price for new condo units was $984,369, up 29.8 per cent over the last 12 months. The benchmark price for new single-family homes was $1.11 million, down 0.2 per cent over the last 12 months.


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

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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


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