The new home market continues to boom, despite efforts to slow down real estate in this one hot city.
New homes in Toronto continue to see strong demand from buyers – especially in the condo sector.
“We continue to see that the Province’s fair housing plan in effect since April has had little impact on the new home market,” BILD President and CEO Bryan Tuckey said in the association’s latest report. “Unlike the resale market which experienced a slow down last month, the numbers reflected in the new homes market are quite different. Prices continue to rise and supply continues to be low.
“Three out of four of the new homes purchased in the GTA so far this year have been condo apartments. With condo prices continuing to escalate, this segment of the market is becoming out of reach for many consumers.”
Multi-family condo sales increased 59% in May, according to the Building Industry and Land Development Association.
New home sales jumped 23% year-over-year in June with a total of 28,889 sales sold this year so far.
According to BILD, over 90% of June home sales were for condo apartments in high-rise, low-rise, mid-rise, and stacked townhomes.
June also saw a record number of new condo sales with 5,495 total units sold – an increase of 89% year-over-year.
“The record number of condominium apartment sales in June was the result of a ‘perfect storm’ of factors”, Patricia Arsenault, Altus Group’s Executive Vice-President of Research Consulting Services, said in the report. “These factors include: the sizeable number of units in new condo projects opened in May and June (over 8,500); demand from end-user buyers who might have preferred a single-family home but have adjusted their expectations due to lack of affordable supply; and heightened investor interest due to the rapid price increases for condo apartments in recent months.”