GTA new home market returns in September

The GTA new home market returned in September, reversing three months of decline, the Building Industry and Land Development Association (BILD) reports.

There were 1,885 new home sales in September, which was up 303 per cent from September 2022 and 32 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.

Pent-up demand

“September sales surged as pent-up demand pulled buyers from the sidelines,” says Edward Jegg, research manager with Altus Group. “Purchasers were lured by lower prices, rising inventory and easing concerns around future interest rate hikes.”

Condominium apartments, including units in low-, medium- and highrise buildings, stacked townhouses and loft units, accounted for 1,290 units sold in September, up 207 per cent from September 2022 and 29 per cent below the 10-year average.

There were 595 single-family home sales in September, up 1,140 per cent from September 2022 and 37 per cent below the 10-year average. Single-family homes include detached, linked and semi-detached houses and townhouses (excluding stacked townhouses).

Resurgence in the market

Total new home remaining inventory increased, compared to the previous month, to 19,141 units. It included 16,342 condominium apartment units and 2,779 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. A balanced market has nine to 12 months of inventory. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

“While we are starting to see a resurgence in the market, one month does not make a trend,” says Justin Sherwood, senior vice-president of communications and stakeholder relations at 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.”

Benchmark prices decreased slightly in September compared to the previous month. The benchmark price for new condominium apartments was $1.03 million, down 10.5 per cent over the last 12 months. The benchmark price for new single-family homes was $1.56 million, down 15.6 per cent over the last 12 months.