GTA new home market quiet in February, inventory rises

The GTA new home market was quiet in February, the Building Industry and Land Development Association (BILD) reports.

There were 922 new home sales in February, which was down 76 per cent from February 2022 and 69 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence. It was the second lowest number of new homes sold in February since Altus Group began tracking in 2000.

Opportunity for buyers

Only 225 single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), were sold in February, down 65 per cent from February 2022 and 81 per cent below the 10-year average. It was the lowest level of single-family home sales for February since Altus Group began tracking.

Condominium suites, including units in low-, medium- and highrise buildings, stacked townhouses and loft units, accounted for 697 units sold in February, down 78 per cent from February 2022 and 61 per cent below the 10-year average.

“Housing inventory has been rising, which represents an opportunity for some new-home buyers,” says Dave Wilkes, BILD president and CEO. “But it would be a mistake to assume that we have overcome the structural challenges that hamper housing supply in the GTA. All levels of government must work with industry to implement the changes necessary to meet the ambitious goal of building 1.5 million new homes in a decade, the number that Ontario’s Housing Affordability Task Force has called for to address the province’s housing supply crisis.”

Stronger spring market

“Builders have been ramping up inventory, particularly in the new condominium apartment sector, in anticipation of a stronger spring market,” adds Edward Jegg, research manager with Altus Group. “As we move into spring, it appears that we may be seeing the floor in the market, which may overcome buyers’ recent hesitancy brought about by the run-up of interest rates and other economic concerns.”

With the launch of seven condominium projects in February, total new home remaining inventory increased compared to the previous month, to 14,621 units, the highest level in more than two years. This included 13,031 condominium units and 1,590 single-family units, representing 9.3 months and 5.2 months of inventory respectively, based on average sales for the last 12 months. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings. A balanced market has nine to 12 months of inventory.

The benchmark price for new single-family homes increased in February compared to the previous month, to $1.75 million, down 5.4 per cent over the last 12 months. The benchmark price for new condominium units decreased to $1.11 which was down 5.5 per cent over the last 12 months.