It’s been a sleepy year so far for GTA real estate, and the new home market has certainly not been exempt. That said, the Building Industry and Land Development Association (BILD) reported Monday that the region's new home segment rallied in March, with 1,277 sales recorded. Although that figure is up 38.5% from February, it’s also down 70% from March 2022 and 65% below the 10-year average.
BILD’s data, based on analytics from Altus Group, also showed that condominium apartments (including those of the low-, medium-, and high-rise variety), stacked townhouses, and loft units accounted for more than half of March’s total sales, with 893 units sold. Even so, that figure was down 73% from the year prior and 63% below the 10-year average.
In the single-family home segment (including detached, linked, and semi-detached houses and townhouses -- but excluding stacked townhouses), just 384 sales were recorded, down 57% from March 2022 and 67% below the 10-year average.
In a press release from today, Dave Wilkes, BILD President and CEO, said that “muted” sales recorded over the past few months will soon give way to hearty demand “as GTA families resume looking for the homes they need.”
In an opposite fashion to overall sales, new home inventory was slightly lower in March compared to the month prior, but posted gains when compared to its year-ago measure clocking in at 14,479 units. Of those units, 12,887 were condominium apartment units and 1,592 were single-family units -- representing around 10.5 months and 6 months of inventory respectively, based on average sales for the past 12 months. A balanced market has nine to 12 months of inventory, the report stipulates.
Any remaining inventory included units in pre-construction projects -- those currently under construction, as well as those in completed buildings.
Edward Jegg, Research Manager with Altus Group, noted in the release that March’s numbers bode well for the months ahead.
“Overall, the new home market remains poised for an upswing as inventory levels are robust,” said Jegg. “With interest rates holding fast and the resale market strengthening, buyers have begun to re-emerge from the sidelines.”
Jegg's assertion is well-supported by the trajectory of benchmark prices, which edged up in March for new single-family homes and condominium apartments alike. Still, the benchmark price for single-family homes ($1,799,971) and condominium apartments ($1,117,867) slipped 2.1% and 10.8%, respectively, when compared to the last 12 months.
