In November, the GTA new home market experienced more typical activity levels for both new home sales and new project openings after a relatively strong October, reports the Building Industry and Land Development Association (BILD).
There were 2,823 new homes sold in the GTA in November, according to Altus Group, BILD’s official source for new-home market intelligence. Condo apartment sales in low, medium and high-rise buildings, stacked townhouses and loft units accounted for 2,454 new home sales in November, a decline of 24 per cent compared to November 2017, but only six per cent below the 10-year average. Meanwhile there were 369 single-family home sales in detached, linked and semi-detached houses and townhouses, an increase of eight per cent year-over-year, but down 71 per cent from the 10-year average.
Remaining inventory rose on a monthly basis to 16,797 units – broken down, that is 11,254 condominium apartment units and 5,543 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed projects.
“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, in a press release. “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.”
The benchmark price for both condominium apartments and single-family homes rose slightly in November 2018 on a monthly basis. The benchmark price for condominium apartments was $786,602, an 11.9 per cent jump year-over-year. The benchmark price for single-family homes was $1,150,823, a decline of 5.9 per cent on an annual basis.
Although the GTA’s housing market continued to show signs of recovery in November 2018, it will continue to operate below capacity until the issues that are restricting supply and demand are addressed through government policy, said David Wilkes, BILD 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,” added 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.”