GTA new home market begins return to normal in April

The GTA new home market rebounded in April, with sales beginning to return to more traditional levels, the Building Industry and Land Development Association (BILD) reports.

There were 2,391 new home sales in April, which was down 35 per cent from April 2022 and 30 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.

Fundamental rebound

Condominium units, including in low-, medium- and highrise buildings, stacked townhouses and loft units, accounted for 1,327 units sold in April, down 57 per cent from April 2022 and 39 per cent below the 10-year average.

There were 1,064 single-family home sales in April, up 81 per cent from April 2022 and 16 per cent below the 10-year average. Single-family homes include detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).

“GTA homebuyers returned to the market, driving new home sales higher,” says Edward Jegg, research manager with Altus Group. “The fundamentals had pointed to a rebound in April, and that strength is expected to continue through the spring market.”

Numerous projects in pipeline

Total new home remaining inventory was 14,928 units, slightly more than the previous month. It included 13,588 condominium units and 1,340 single-family homes, representing about 12 months and four months of inventory, respectively, based on average sales for the last 12 months. Remaining inventory includes units in pre-construction projects, in projects currently under construction, and in completed buildings. Although inventory numbers have moved closer to balanced market requirements of nine to 12 months of inventory, it is too early to suggest required inventory levels have resulted in a sustained balanced market.

The benchmark price for new single-family homes decreased in April, compared to the previous month, to $1.76 million, which was down 1.1 per cent over the last 12 months. The benchmark price for new condominium units also decreased in April, compared to the previous month, to $1.10 million, down 7.3 per cent over the last 12 months.

“In the short term, the impact of sales on new home inventory will be balanced by new project openings, with numerous projects in the pipeline,” says Dave Wilkes, BILD president and CEO. “However, longer term we cannot take our eye off what needs to be the singular focus of every municipality in the GTA – consistently adding sufficient housing supply. Failure to do so will simply result in inflationary pressures to the cost of new homes returning.”