Sales of new homes in the Greater Toronto Area are slowly returning to more normal levels according to the Building Industry and Land Development Association (BILD).
Using Altus Group data, the association says sales of new homes totaled 2,823 in November, mainly due to sales of condo apartments in low, medium and high-rise buildings, stacked townhouses and loft units.
Condo sales were 24% down from a year earlier to 2,454 but were only 6% below the 10-year average.
"The condominium apartment market in the GTA is finishing off the year on a stronger note than it started," said Patricia Arsenault, Altus Group's Executive Vice President, Data Solutions. "Both builders and buyers have re-engaged in stronger numbers in recent months, signalling that the downturn that followed record activity last year may be coming to an end."
Meanwhile, single-family sales were 71% below the long-term average with 369 sales, up 8% year-over-year.
Across all both home types, remaining inventory increased month over month, to 16,797 units; 11,254 condo apartment units and 5,543 single family units. This includes units in preconstruction projects, in projects currently under construction, and in completed buildings.
The benchmark price for both condo apartments and single-family homes increased slightly in November compared to the previous month. The benchmark price for condo apartments was $786,602, which was up 11.9% over the last 12 months. The benchmark price for single-family homes was $1,150,823, down 5.9% over the last 12 months.
Issues must be addressed
There are key issues that need addressing to bring the GTA new housing market back to its potential says David Wilkes, BILD’s president and CEO.
"The time for talk is done and our region needs action now to ensure we build the more than 50,000 new homes needed annually to support the GTA's growing population," said Mr. Wilkes. "Our industry is encouraged by the provincial government's commitment to unlocking supply. We will continue to call on municipal governments to expedite approvals of new developments, and on the federal government to undo the negative effects of the outdated stress test on consumers' ability to purchase homes."