Stagnant supply and mounting prices are dominating the Greater Toronto Area’s housing market, according to a new analysis by Altus Group.
Inventory stood at 13,647 units as of May, which represented a slight decline from April amid scant new projects.
“Two months into the COVID-19 crisis, we are continuing to see the impact on available new home inventory numbers, with the number of new units brought to market in April and May reaching unprecedented low levels,” said Matthew Boukall, vice president of data solutions at Altus Group. “Looking back at the market activity following the SARS outbreak in 2003, the industry will likely experience more months of disruptions to available inventory and sales.”
The Building Industry and Land Development Association said that this trend might feed into risks similar to those faced by Vancouver.
“The fact that we have not seen much new supply brought to market in the last few months is not surprising, but it is concerning, given our region’s ongoing housing shortage,” said David Wilkes, president and CEO of BILD. “Construction delays due to the pandemic won’t just affect housing supply but will also have fiscal implications, including a loss or delay of some $850 million in government revenues.”
The benchmark price for new condos in the GTA went up 26.4% annually in May, reaching $985,436. Meanwhile, the value of single-family homes remained virtually flat year over year, although this was at a sky-high level of $1,109,643.