TORONTO, Aug. 28, 2024 (GLOBE NEWSWIRE) — Greater Toronto Area, August 28, 2024 – In the Greater Toronto Area (GTA), new home sales remained sluggish in July, hitting a historic low for the month as very few new projects were released and inventory steadily increased for several months, the Building Industry and Land Development Association (BILD) announced today.
According to Altus Group*, BILD’s official source for new-build market information, 654 new homes were sold in July, 48 percent fewer than July 2023 and 70 percent below the 10-year average.
“GTA new home sales fell to a new monthly record low in July 2024 as buyers remained unwilling to pull out,” said Edward Jegg, research manager at Altus Group. “Further expected interest rate cuts in the coming months, along with increased inventory levels, mean there will be plenty of opportunities once consumer confidence improves.”
Condominiums, including units in low-rise, mid-rise, high-rise, stacked townhouses and loft units, accounted for 287 units in July, 67 percent less than July 2023 and 81 percent below the 10-year average.
In July, 367 single-family homes were sold, one percent fewer than in July 2023, but 42 percent fewer than the 10-year average. Single-family homes include detached, terraced, semi-detached, and townhouses (excluding stacked terraced homes).
Total new home inventory increased month-over-month to 21,660 units. This includes 17,445 condos and 4,215 single-family homes. Based on average sales over the past 12 months, this represents 15 months of total inventory. This is high inventory, continuing the trend seen since fall 2023 of remaining inventory being near or just above the 20,000 unit mark. Months of inventory is increasing not because the number of new units coming to market is increasing dramatically, but because sales are continually declining. This is an unhealthy situation because as interest rates fall, sales will return, but new construction will take longer to recover, creating a future supply-demand imbalance.
“The numbers paint a clear picture and show that an urgent government response is needed,” said Justin Sherwood, SVP Communications & Stakeholder Relations at BILD. “Changes in interest rates will not solve an ongoing structural problem that is particularly evident in the GTA. Construction costs, driven by excessive government fees and taxes, are simply too high. Without immediate government action, new construction will continue to decline and the housing shortage in the GTA will reach unprecedented levels in the next few years.”
Benchmark prices declined year-over-year in July for both single-family homes and condos. The benchmark price for new condos was $1,020,179, down six percent over the past 12 months. The benchmark price for new single-family homes was $1,585,881, down five percent over the past 12 months.
With 1,200 member companies, BILD is the voice of the residential, non-residential and professional renovation industries in the Greater Toronto Area. The construction and renovation industry provides 256,000 jobs and an investment volume of $39.3 billion in the region. BILD is a member of the Home Builders’ Association of Ontario and Canada.
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For more information or to schedule an interview, contact Janis McCulloch at [email protected] or 416-617-7994.
*Altus Group is the official BILD source for information on the new build property market.
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CONTACT: Janis McCulloch Building Industry and Land Development Association (BILD) 416-617-7994 [email protected]
