While new home sales in the GTA continued strong through May, the benchmark price for new single-family homes decreased compared to the previous month... For the second month in a row.
Despite lowering from April's $1,395,190 to $1,063,973 in May, the price did remain 24.4% over that of the last 12 months, according to the Building Industry and Land Development Association (BILD).
Meanwhile, the benchmark price for new condominium apartments increased in May to $1,063,973, rising from $1,058,432 in April, and surpassing the price recorded over the last 12 months by 8%.
While prices were all at once up and down, the market's activity remained strong, hovering 5% above the 10-year average.
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According to Altus Group, BILD’s official source for new-home market intelligence, a total of 3,661 units were sold through May. Of these, 2,396 were condominium apartments -- that's units in low, medium, and high-rise buildings, alongside stacked townhouses and lofts -- and condo sales closed the month 10% above the 10-year average.
“While sales of new condominium apartments were lower in May than the frenzied pace of the previous two months, they were still above the 10-year average for May as demand remains buoyant and activity settles into more sustainable levels,” said Ryan Wyse, Altus Group’s Manager, Analytics, Data Solutions.
“Buyers continue to be attracted to new openings, with about half of the newly released units available for purchase before the last 10 days of May selling within the month.”
New single-family home sales -- which encompass detached, linked, and semi-detached homes and townhouses (excluding stacked) -- reached 1,265 units in May, coming in 3% below the 10-year average.
At May's end, the total new home remaining inventory was recorded at 12,555, which represents 3.3 months worth of inventory based on the current pace of sales.
A balanced market, meanwhile, would present 9 to 12 months of inventory, BILD reports.
Units counted toward remaining inventory include pre-construction projects, projects currently under construction, and completed builds.
“Municipalities need to speed up approvals of shovel-ready projects, and as we look ahead to continued population growth in the GTA, they need to evaluate all aspects of the development approvals process to ensure that the new homes the region needs are being built in a timely manner,” said Dave Wilkes, BILD President and CEO.
“The low inventory levels reported in the May data underline the need for GTA municipalities to address chronic shortages of housing supply."
