The GTA new home market slowed in July, as rising interest rates left prospective buyers cautious during what is already typically a quiet month for new home sales, the Building Industry and Land Development Association (BILD) reports.

There were 1,190 new home sales in July, down 18 per cent from July 2022 and 50 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.

Affordability challenge

“GTA new home sales slumped in July,” says Edward Jegg, research manager at Altus Group. “The latest interest rate hikes have pushed many buyers to the sidelines again as affordability continues to deteriorate.”

Condominium apartments, including units in low-, medium- and highrise buildings, stacked townhouses and loft units, accounted for 828 units sold in July, down 39 per cent from July 2022 and 50 per cent below the 10-year average. It was the lowest number of condominium units sold in July in 23 years.

There were 362 single-family home sales in July, up 281 per cent from July 2022 but 51 per cent below the 10-year average. Single-family homes include detached, linked and semi-detached houses and townhouses (excluding stacked townhouses).

Total new home remaining inventory inched up in July from the previous month’s total, to 16,683 units. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

Federal government help

With slowing sales and rising inventory, benchmark prices softened. The benchmark price for new condominiums was $1.08 million, which was down nine per cent over the last 12 months. The benchmark price for new single-family homes was $1.67 million, down 13.5 per cent over the last 12 months.

“It is time the federal government recognized its role in helping provinces, municipalities and the industry meet housing demand pressures for which its own policies and federal institutions are in part responsible,” says Dave Wilkes, BILD president and CEO. “The measures within the government’s scope that can help with affordability and new housing supply include deferring HST on purpose-built rentals, helping municipalities financially to deliver infrastructure that supports housing, and indexing the thresholds for the GST/HST new housing rebate. We call on the federal government to act with the urgency the situation demands.”