Demand for new homes remains high throughout the Greater Toronto Area (GTA), despite the lack of new inventory that continues to struggle to keep up with sales and put more pressure on prices in the process.
June's activity brought the total number of sales during the first six months of the year up 25% above the 10-year average, according to the Building Industry and Land Development Association (BILD).
In total, the number of new homes sold throughout the first six months of 2021 hit 24,060 last month, while total June new home sales, with 3,860 units sold, were 4% above the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.
Of the new homes sold, condominium apartments -- including units in low, medium, and high-rise buildings, stacked townhouses, and loft units -- accounted for 2,775 new home sales in June -- up 13% above the 10-year average. The spike in new condo sales was lead by Toronto (867), followed by Halton (704) and York (493), suggesting that the return to urban centres and condo living is resuming as the province continues to reopen.
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On the other hand, sales of new single-family homes -- including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses) -- accounted for 1,085 units sold in June, falling 14% below the 10-year average.
“The demand for new homes remains impressive, in particular given the challenges homebuyers have faced in the past year,” said Edward Jegg, Analytics Team Leader, Data Solutions, Altus Group.
“New product brought to the market has not kept pace with sales, and as a result, relatively low inventories of product available to purchase continue to exert pressure on prices.”
Subsequently, the benchmark price for new condominium apartments in June was $1,058,366, up 5.9% over the last 12 months, while the benchmark price for new single-family homes was $1,405,597, up 23.1% over the past year.
BILD says the remaining inventory of new homes, which includes units in preconstruction projects, in projects currently under construction, and in completed buildings, was 11,451 units in June.
“The new home market has been a key driver of economic activity through the pandemic, providing jobs and homes for the residents of the GTA,” said Dave Wilkes, BILD President & CEO.
“As we look forward, we will be monitoring the continuing strength and speed of economic recovery, the return of typical immigration levels and the possible rise in interest rates, and their impact on the new home market.”
