May new home sales: Record-breaking lows and what this could mean for the GTA’s future housing supply
June 26 2024 - 6:05AM
Greater Toronto Area, June 26, 2024 – Greater Toronto Area
(GTA) new home sales remained slow in May, with monthly sales
hitting lows not seen since the pandemic-impacted May 2020.
Year-to-date sales from Jan-May 2024 are also sitting at a
record-breaking low at 39 per cent below Jan-May 2009, the Building
Industry and Land Development Association (BILD) announced today.
There were 936 new home sales in May, which was down 71 per cent
from May 2023 and 71 per cent below the 10-year average, according
to Altus Group*, BILD’s official source for new home market
intelligence.
“New home sales across the GTA continued to languish in May
under the weight of elevated prices and high interest rates,” said
Edward Jegg, Research Manager with Altus Group. “Despite the rate
drop earlier this month, additional relief will be required to coax
prospective buyers back into the market.”
Condominium apartments, including units in low, medium and
high-rise buildings, stacked townhouses and loft units, accounted
for 539 units sold in May, down 75 per cent from May 2023 and 75
per cent below the 10-year average.
There were 397 single-family home sales in May, down 65 per cent
from May 2023 and 61 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 20,427 units. This includes 16,845 condominium
apartment units and 3,582 single-family dwellings. This represents
a combined inventory level of 14.5 months, based on average sales
for the last 12 months. This remains an exceedingly high inventory
level, maintaining the trend seen since the fall of remaining
inventory levels hovering consistently near the 20,000 mark.
“The continuing record lows in new home sales is a flashing
check engine light on the dashboard. Today’s sales are tomorrow’s
starts. It is inevitable that we are entering further tight
supply conditions in the next two to three years,” said Justin
Sherwood, SVP Communications & Stakeholder Relations at BILD.
“Not only are high interest rates keeping buyers on the sidelines,
but higher rates are making financing for new projects more
difficult and expensive. When combined with higher construction
costs, land costs and material costs and increasing government fees
and taxes, the new home industry in the GTA is slowing down
precipitously and new home supply in the 2025-2027 time period will
reflect this. To avoid future lack of supply driven price
appreciation, we need all parties, all levels of government, CMHC
and the industry to sit down and arrive at collaborative solutions
that will support those seeking to call the GTA home.”
Benchmark prices decreased in May for both single-family homes
and for condominium apartments compared to the previous month. The
benchmark price for new condominium apartments was $1,043,861,
which was down five per cent over the last 12 months. The benchmark
price for new single-family homes was $1,612,515, which was down
seven 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.
- May new home sales: Record-breaking lows and what this could
mean for the GTA’s future housing supply
- Altus Data Solutions - BILD - Media Backgrounder - New Homes
Data - May 2024
Janis McCulloch
Building Industry and Land Development Association (BILD)
416-617-7994
jmcculloch@bildgta.ca