New home market sees small increase in activity in October

The GTA new home market picked up slightly in October, though activity remained below levels that are typical for the month, the Building Industry and Land Development Association (BILD) reports.

Total October new home sales of 2,007 units were down 53 per cent from October 2021 and 49 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence. It was the lowest level of new home sales for October since 2008.

Demand reasserting itself

Sales of new condominium units, including units in low-, medium and highrise buildings, stacked townhouses and loft units, with 1,601 units sold, were down 50 per cent from October 2021 and 40 per cent below the 10-year average.

Single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), accounted for 406 units sold, down 64 per cent from last October and 67 per cent below the 10-year average. It was the lowest October for single-family home sales since Altus Group started tracking in 2000.

“As demand for housing begins to reassert itself, our region’s lack of supply will continue to constrain consumers’ ability to find the homes they need,” says Dave Wilkes, BILD president and CEO. “That’s why we support the Ontario government’s new housing plan, the More Homes Built Faster Act, which will make it easier to build new homes more quickly, reduce costs, cut red tape and enable the building of the 1.5 million new homes Ontario needs in the next decade.”

Market improvement

“New home sales remain well behind last year’s level but are much improved from the past two months,” adds Edward Jegg, research manager at Altus Group. “Buyers are returning as they become acclimatized to the new market realities of higher mortgage rates and softening prices.”

Benchmark prices eased somewhat in October, compared to the previous month. The benchmark price for new condominium units in October was $1.14 million, up nine per cent over the last 12 months, and the benchmark price for new single-family homes was $1.81 million, which was up 9.6 per cent.

Total new home remaining inventory, at 12,588 units, saw little change from the previous month, and lagged behind the 10-year average by 40 per cent. Remaining inventory included 10,773 condominium apartment units and 1,815 single-family lots, representing five months and four months of inventory, respectively. A balanced market would have nine to 12 months of inventory.