Condo units dominated GTA new home sales in January, outpacing single-family homes by more than two-fold. Buyers scooped up 886 condo units, including loft units and stacked townhomes, and 365 single-family homes, including link, semi-detached and townhomes, for a total of 1,251 new homes sales last month, according to Altus Group, the Building Industry and Land Development Association’s (BILD) official source for new-home market intelligence.
The number of new single-family homes sold in January marked a plunge to volumes not seen in this segment of the market for this month in more than 18 years, reported BILD. By comparison, the number of new condo units sold in January were considered to fall within seasonal norms.
“New condominium apartment sales in January were in line with typical levels for this time of year,” said Patricia Arsenault, executive vice-president of research consulting services at Altus Group. “New condos remain an attractive option for end-user buyers looking for more affordable homes, as well as for investors who are ensuring needed new rental supply continues to flow into a tight rental market.”
David Wilkes, president and CEO of BILD, said the latest new home sales data reflect recent trends.
“Our industry wants to meet consumer demand in terms of the mix and type of homes available, but we are constrained by government policy,” said Wilkes. “Affordability and the lack of supply of single-family housing remain a challenge.”
As the benchmark price for new single-family homes surged almost 20 per cent year over year to $1,229,454 in January, the benchmark price for new condos swelled more than 40 per cent year over year to $714,430.
BILD reported that inventory in the new homes market remained below healthy levels in January, despite edging up from 11,397 units to 11,750 units. The pace of sales over the last year suggests that this represents around three to four months’ worth of inventory, compared to the nine to 12 months’ worth of inventory considered to be healthy.
“All levels of government and the building industry have a role to play in increasing housing supply and we need to work together to simplify approval processes, update zoning by-laws and service developable land so we can bring more homes to market,” said Wilkes.
