GTA new home sales in July at an all-time low – urgent government action needed
August 28 2024 - 9:43AM
Greater Toronto Area, August 28, 2024 – Greater Toronto Area
(GTA) new home sales in July remained slow, recording an all-time
low for the month with very few new project releases and steadily
increasing months of inventory, the Building Industry and Land
Development Association (BILD) announced today.
There were 654 new home sales in July which was down 48 per cent
from July 2023 and 70 per cent below the 10-year average, according
to Altus Group*, BILD’s official source for new home market
intelligence.
“GTA new homes sales in July 2024 sank to another record monthly
low as buyers remained unwilling to leave the sidelines,” said
Edward Jegg, Research Manager with Altus Group. “Further expected
decreases in interest rates in the coming months, along with
elevated inventories, means there will be plenty of opportunities
once consumer confidence improves.”
Condominium apartments, including units in low, medium and
high-rise buildings, stacked townhouses and loft units, accounted
for 287 units sold in July, down 67 per cent from July 2023 and 81
per cent below the 10-year average.
There were 367 single-family home sales in July, down one per
cent from July 2023 but 42 per cent below the 10-year average.
Single-family homes include detached, linked and semi-detached
houses and townhouses (excluding stacked townhouses).
Total new home remaining inventory increased compared to the
previous month, to 21,660 units. This includes 17,445 condominium
apartment units and 4,215 single-family dwellings. This represents
a combined inventory level of 15 months, based on average sales for
the last 12 months. This is a high inventory level, maintaining the
trend seen since autumn 2023 of remaining inventory levels near or
just above the 20,000-unit mark. Months of inventory are increasing
not because the number of new units coming to market is
dramatically increasing, but rather because sales are continually
decreasing. This is an unhealthy situation, because as interest
rates decrease, sales will return but it will take longer for new
building to recover, setting up a future supply/demand
imbalance.
“The numbers present a clear picture and signal the need for an
urgent response from government,” said Justin Sherwood, SVP
Communications & Stakeholder Relations at BILD. “Changes in
interest rates will not solve what is an ongoing structural
problem, particularly evident in the GTA. The cost to build, driven
by excessive government fees and taxes, is simply too high. Without
immediate action by government, new construction activity will
continue to slow and the GTA’s housing shortage will reach
unprecedented levels over the next few years.”
Benchmark prices decreased in July for both single-family homes
and for condominium apartments compared to the previous year. The
benchmark price for new condominium apartments was $1,020,179,
which was down six per cent over the last 12 months. The benchmark
price for new single-family homes was $1,585,881, which was down
five per cent over the last 12 months.
With 1,200 member companies, BILD is the voice of the home
building, residential and non-residential land development and
professional renovation industries in the Greater Toronto Area. The
building and renovation industry provides 256,000 jobs in the
region and $39.3 billion in investment value. BILD is affiliated
with the Ontario and Canadian Home Builders’ Associations.
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For additional information or to schedule an interview, contact
Janis McCulloch at jmcculloch@bildgta.ca or 416-617-7994.
*Altus Group should be credited as BILD’s official source of new
home market intelligence.
- Altus Data Solutions media backgrounder July 2024
- GTA new home sales in July at an all-time low – urgent
government action needed
Janis McCulloch
Building Industry and Land Development Association (BILD)
416-617-7994
jmcculloch@bildgta.ca