Toronto, ON, July 25, 2022 (GLOBE NEWSWIRE) — Greater Toronto Area, July 25, 2022 – Sales of new homes in the GTA continued to decline in June, the Building Industry and Land Development Association announced today.
June total new home sales of 1,694 units were down 56% from June 2021 and 52% below the 10-year average, according to Altus Group*, BILD’s official source for the information. in the new home market.
Sales of new condominium apartments, including units in low-, mid-, and high-rise buildings, stacked townhouses and lofts, with 1,519 units sold, were down 44% from June 2021 and 36% below the ten-year average.
Single-family homes, including detached, semi-detached and semi-detached homes and townhouses (excluding stacked townhouses), accounted for 175 units sold, down 85% from last June and 85% below the ten-year average.
“New home sales figures for June reinforced the expected decline in sales from last year’s exceptionally fast pace,” said Edward Jegg, director of research at Altus Group. “With interest rates continuing to rise, high inflation, affordability pressures and general economic uncertainty, many buyers are adopting a wait-and-see attitude that should last through at least the summer months.”
The benchmark price for new condominiums in June was $1,189,894, up 12.4% over the past 12 months, and the benchmark price for new single-family homes was $1,843,595, up 31.2% over the last 12 months.
Total inventory of new homes remaining increased from the previous month to 11,639 units, consisting of 9,717 condominium apartments and 1,922 single-family lots, representing 3.5 months and 2.7 months of inventory, respectively. A balanced market would have 9 to 12 months of inventory.
“While many potential home buyers in the GTA delay buying the homes they need amid economic uncertainty, our region’s fundamental housing supply challenges remain unresolved,” said Dave Wilkes, President and CEO of BILD. “Nearer-term economic conditions on the demand side and inflationary pressures are cooling demand but simultaneously increasing new construction costs. This will continue to impact overall supply. Now is the time for all levels of government to make bold decisions to ensure we have the housing supply and choice that future generations of residents of the Greater Toronto Area will need.
With over 1,300 member companies, BILD is the voice of the home building, land development and professional renovation industry in the Greater Toronto Area. The construction and renovation industry provides over 231,000 jobs in the region and $26.9 billion in investment value. BILD is proudly affiliated with the Home Builders Associations of Ontario and Canada.
For more information or to schedule an interview, contact Justin Sherwood at [email protected] or 416-371-6005.
* Altus Group should be credited as the official source of BILD’s domestic market information.
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