Opportunistic buyers returned to the Greater Toronto Area’s new home market in September, new data suggests.
The Building Industry and Land Development Association (BILD) reported on Thursday that 1,885 new home sales were recorded across the GTA region last month, marking a year-over-year rise of 303% and “reversing three months of decline.” Even so, BILD says that September’s sales were 32% below the 10-year average.
“September sales surged as pent-up demand pulled buyers from the sidelines,” says Edward Jegg, Research Manager with Altus Group — BILD’s official source for new home market intelligence.
“Purchasers were lured by lower prices, rising inventory, and easing concerns around future interest rate hikes.”
The bulk of new home sales reported in September tracked back to condominium apartments — including units in low, medium, and high-rise buildings, stacked townhouses, and loft units — with 1,290 units sold in the month. That figure is up 207% from September 2022, but is 29% below the 10-year average.
Meanwhile, 595 single-family homes — including detached, linked, and semi-detached houses and townhouses — changed hands, up 1,140% from September 2022.
“While we are starting to see a resurgence in the market, one month does not make a trend,” notes Justin Sherwood, Senior Vice President for BILD.
“Now is the time for stability. Stability in government housing policy ensures the industry operates in a predictable market to bring the housing supply to this rapidly growing region it desperately needs and stability in interest rate policy will allow new home buyers to purchase with confidence.”
Thursday’s report also reveals that the total new home inventory crept up in the month to 19,141 units. Of that total, 16,342 were condominium apartment units and 2,779 were single-family lots.
“This is the first time since 2019 that inventory levels have exceeded the 10-year average and represents a combined inventory level of almost seven months, based on average sales for the last 12 months,” the report explains. It adds that a balanced market typically has nine to 12 months of inventory.
“Remaining inventory includes units in pre-construction projects, in projects currently under construction and in completed buildings.”
As well, the report notes that benchmark prices dipped “slightly” from the prior month to $1,037,538 (for new condominium apartments) and $1,566,887 (for new single-family homes). Condo and single-family home prices have also fallen 10.5% and 15.6%, respectively, over the last 12 months.